LIC – Disability insurance Review
Today disability is not a taboo in the society. The scenario has changed completely to the past dark days. There are financial products also available and insurance schemes to give a transformation to differently-abled people.
Disability insurance Policies
LIC has two insurance plans launched:
- Jeevan Adhar-Whole life
- Jeevan Vishwas- Endowment Assurance
These policies cover a person’s life that has handicapped dependants. This policy will ensure the handicapped dependent receives a lump amount on maturity or even if the policy holder faces death.
Physically disabled people can purchase health insurance once they complete the process of medical tests. However, if there are disorders such as speech disability or learning disability or people with amputated foot are accepted without any tests. There is Nirmaya of the National Trust an insurance scheme for people facing diseases such as cerebral palsy, autism, multiple disabilities and mental retardation. It covers several OPD treatments from Day 1 for the pre-existing ailments. It also provides group life insurance for guardians, parents and supporters of people with mental retardation, autism and multiple disabilities. The guardian in group plan has coverage of Rs 10 lakh.
Very interesting one to check– FREE medical checkup for health insurance policy holders
Discounted Interest Rates for Differently-Abled people
The government sanctions loans to meet divergent needs at concessional rates such as buying vehicle, setting own business, higher studies, etc. The loan structure is:
- Interest is 5% upto Rs. 5 lakh
- 8% above Rs 5 lakh
The physically challenged people are eased the biometric data entry norms and government has a special mobile van for Aadhaar card enrolment. Visually impaired people can buy investment and insurance products. Software is used by companies that read the policy to them. Visually impaired people can use teller machines. There are banks that have set up ATMs that features Braille support for the card slot and reader.
Qualifying for disability?
- Prove you offer financial assistance to your family and submit relevant documents to ensure gainful employment and the details of dependents.
- Perform a medical test, evaluate risks and ascertain it. Determine the premium and pay for the coverage.
- Mentally disabled, blind or complete immobility may not get a cover.
Information to be shared by disabled proposer on insuring and the documentation required
- Proposer should declare his disabilities in the proposal form.
- Insurers need documentation that states he person is permanently disabled to understand the disability degree of the proposer and the effect.
Disability Insurance Benefits – Tax Benefits
- Disability tax deductions are 80U and 80DD.
Section 80 U provides lump sum deduction on the income. This deduction amount is determined depending on the disability extent
- Disabled Person with 40% – 79% – Rs. 50000 deduction
- Disabled Person with more than 80% – Rs. 100000 deduction.
Section 80DD supports financially the parents, children, spouse and siblings and they can claim deduction for the benefit.
- Family member with 40% – 79% disability – Rs. 50,000 deduction
- Family member with more than 80% of disability – Rs. 100,000 deduction
Options available for the disabled health insurance
- Disabled physically can acquire health insurance once the medical test is completed. This is tough if a person has a chronic ailment.
- Severely disabled people may find health insurance a tough task to get. Insurers avoid totally or permanently disabled people who are blind, bed-ridden and face serious mental disorders for accident or health disability insurance.
- Disorders not affecting mobility and mental disorders such as disability in speech or amputated foot are accepted. Yet, producing certificates is essential to assess the risk and sometimes medical tests may be conducted.
- Niramaya Health Insurance Scheme covers people for Rs. 1 lakh at a nominal premium even with mental disabilities. This cover covers OPD treatments and the from Day 1 for pre-existing diseases.
India is changing and the evolving fast sector is the insurance. However, there are lots more to be done for the short term and long term disability facing person disabled and their families. Insurance companies claim to face severe challenge in pricing disability specific products. Yet, there is a ray of hope from the IRDA and the government to come with schemes resolving the insurance issues for disabled people.
What do you think? Differently-Abled people will get benefits with this?
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