Are diabetic, cardiac, kidney, and neurological problems covered in a health policy?
Any kind of hospitalisation, typically for more than 24 hours, is covered under health insurance policies and even certain day care procedures like angiographies, cataract operation are also covered. So physically, hospitalisation expenses incurred on account of any illness, disease, injury will be covered except for some temporary or permanent exclusions.
The example of permanent exclusions is hospitalisation expenses incurred are suicide, self-inflicted injury or illness, mental disorder, anxiety, stress or depression, use of alcohol or drugs, expenses incurred for the treatment of diseases such as HIV or AIDS. It also excludes the money spent on the cost of spectacles, contact lenses and hearing aids.
The biggest example of temporary exclusions is for hospitalisation expenses incurred on pre-existing disease, which is typically covered after 3-4 years. As long as the diabetes, cardic, kidney disease are not pre-existing, the hospitalisation expenses on disease due to these is covered. Certain neurological diseases may be in the list of permanent exclusions in certain specific policies.
I am unable to work due to disability. Will I get health insurance cover?
It depends on the disability. We suggest that you should buy a health insurance policy. Suppose you are disabled due to poor eyesight, you may not be able to work but you may fall ill and need hospitalisation. Insurance company will put eye disease or ailment as pre-existing disease and any hospitalisation expenses arise from that may not be payable, but there can be hundreds of other ailment and accidental happenings, which get covered.
I would like to know if home loan interest rates will rise in the future or if they have stabilised.
It is very difficult to predict interest rates movements. It is, however, well recognised that interest rates move in cycles, with highs and lows. The factors affecting interest rates are numerous such as inflation, money supply, foreign exchange flows, etc. Currently, there is a market consensus that interest rates are very close to their peak.
If the property for which I have taken a home loan goes under some kind of legal dispute or the builder stops construction, what will happen to the loan? Will I need to keep paying the EMI? How will the property insurance help in such cases?
In cases where the property on which loan has been taken goes under dispute, the borrower is still obliged to keep on paying the EMI. Giving of loan by a bank on specific property does not carry any warranty of waiver or moratorium of payment of EMI.
Property insurance does not cover risks on matters pertaining to delay due to builder’s fault or legal dispute. You are still liable to pay the home loan EMIs to your bank to avoid being a defaulter. Basically, it is the buyer (i.e. you) who is responsible for checking on the property title or the possibilities of a delay in construction and the risks incidental thereto. Title insurance is still not available in India.
I have taken a home loan from SBI under the MaxGain account plan. In the same account, I can deposit any surplus money other than the EMI being paid by me every month. The surplus can be withdrawn if needed otherwise the surplus will save me the equivalent interest that the bank keeps charging regularly. I want to prepay some portion but the bank manager said that depositing in MaxGain account is the same as prepayment. The whole thing is getting pretty confusing. Please, suggest what can I do?
The manager is right. Putting money in the linked account is as good as prepayment. Additionally it gives you the flexibility to take back the prepayment if you so desire.
Harsh Roongta is the CEO of Apnapaisa.com. You can send in your queries to
movingmoney @deccanmail.com