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JITENDRA
JITENDRA
Ramalingam

Ramalingam Kalirajan4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked on - May 17, 2024Hindi

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Hi, I am 54 with HBA1C level above 11. None of the Insurance company is ready to give me Any term Plan. Can u suggest any protective Insurance Plan as I have Home Loan of around rs. 1.5 Crore with No Insurance protection shield. Thank you.
Ans: Unfortunately, due to your high HbA1C level, securing traditional term life insurance might be difficult. However, there are a few options you can explore to protect your loved ones financially in case of your demise, especially considering your home loan:

1. Guaranteed Issue Whole Life Insurance:

This type of whole life insurance offers a death benefit regardless of your health condition. However, there are downsides:
Premiums are typically higher than term life insurance.
The death benefit may be lower compared to a traditional term plan.
The cash value accumulation component might be minimal.
2. Group Term Life Insurance:

Employers or professional organizations sometimes offer group term life insurance plans. These plans may have relaxed underwriting guidelines and might be worth exploring if available to you.
3. Focus on Managing Diabetes:

While it might not help with immediate insurance coverage, prioritizing diabetes management can significantly improve your health and potentially allow you to qualify for better insurance options in the future. Here are some resources that can help:
American Diabetes Association: https://diabetes.org/
National Institute of Diabetes and Digestive and Kidney Diseases: https://www.niddk.nih.gov/
4. Loan Protection Insurance (LPI):

Offered by some lenders, LPI pays off your outstanding loan balance in case of the borrower's death. While it doesn't provide benefits to your beneficiaries beyond the loan, it can help secure your home for your family.
5. Critical Illness Insurance:

This type of insurance pays a lump sum benefit if you are diagnosed with a critical illness, such as a heart attack or stroke. This money could be used to cover medical bills or your home loan.
Recommendation:

Consult a financial advisor specializing in high-risk life insurance. They can assess your specific situation and recommend the most suitable options for your needs.
Talk to your current mortgage lender about Loan Protection Insurance (LPI) to safeguard your home in case of an unfortunate event.
Remember, managing your diabetes is crucial for your overall health and future insurability. By exploring these alternatives and prioritizing your health, you can create a financial safety net for your loved ones.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
(more)
Ramalingam

Ramalingam Kalirajan4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked on - May 17, 2024Hindi

Listen
Money
Hello Sir, I am 54 Year Old working on senior Position in Listed company and drawing CTC of 50+ Lakh. last few years I am suffering from high Diabetic and HBA1C is in uncontrollable state. I have taken home loan of 1.5 Cr and Also have invested in commercial property worth Rs. 1 Cr. I feel worried and guilt as I did not bought term Insurance when I was healthy and fit. Now I fear if something happens to me whether the corpus will be sufficient for my wife to survive in a respectable position? She already have rental income of Rs. 40K PM apart from 20K PM other income, Also my PF,Gratuity and NPS might be used for pay-off the O/s Loan. Now none of the Insurance company is accepting my policy. I dont want to go with keeping my wife in vulnerable Position. My only son is Studying abroad and not yet fully settled. I don't have any bad habit like smoking, Alcohol or any other. I have no clue how can I restore my position? I am very positive towards my life and other challenges in my life but recently My elder brother expired at 57 due to same illness So I m very much tensed. Can you guide me?
Ans: Assessing Your Current Financial Situation

Hello Jitendra,

I understand your concerns regarding your health and financial well-being, especially given your high diabetic condition and recent family loss. You've achieved a lot professionally, and it's commendable how you're taking proactive steps to secure your family's future.

Analyzing Assets and Liabilities

Firstly, let's evaluate your assets and liabilities. You have a significant home loan and a commercial property investment. Your wife has rental income and other earnings, which is a positive aspect. However, your outstanding loan needs attention.

Your prudent decision to not engage in habits like smoking or alcohol is commendable and can positively impact your health and financial stability.

Assessing Insurance Needs

Given your health condition, obtaining term insurance might be challenging. However, we can explore other options to protect your family financially. We'll consider leveraging your existing assets, such as PF, Gratuity, and NPS, to manage the loan and ensure financial stability for your wife.

Exploring Alternative Investment Strategies

While real estate isn't recommended due to its illiquidity, we can explore other investment avenues that align with your risk profile and financial goals. As a Certified Financial Planner, I suggest considering a diversified portfolio of mutual funds, considering your risk appetite and investment horizon.

Planning for Your Son's Future

Your son's education and settlement abroad are crucial considerations. We can devise a strategy to ensure his financial needs are met without compromising your retirement plans or your wife's financial security.

Mitigating Risks

Given your health concerns, it's essential to have a contingency plan in place. We'll explore options to create an emergency fund and optimize existing resources to cover medical expenses and other unforeseen circumstances.

Maintaining Positive Outlook

Despite the challenges you're facing, maintaining a positive attitude is admirable. Together, we'll work towards restoring your financial position and ensuring peace of mind for you and your family.

Jitendra, your proactive approach to seeking guidance demonstrates your commitment to securing your family's future. Rest assured, with careful planning and strategic financial management, we'll navigate through these challenges successfully.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
(more)
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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