Persona Designata

The Policy must be on his own life

The proposer should be a married, divorced or widowed man. Only his wife and children can be beneficiaries

Each policy will remain a separate trust. when a claim arises, the policy monies will be paid to the trustees according to the policy.

The trustees hold the policy money for the beneficiaries. It should not have been formed to defraud creditors. Two or more trustees can be appointed.

Nomination and assignment are not allowed.

In the case of Mohammed proposers:

• The beneficiaries have to be named as it is 'Persona Designata'
• The name of the wife and children as beneficiaries should be stated in the policy and they must be existing at the time the policy is taken out.
• In circumstances where there are more than two beneficiaries, the proposer needs to mention the respective share for each beneficiary.

Married Women's Property Act 1874

The Proposer can appoint :

• A person as a trustee
• Two or more persons as trustees
• A corporate trustee, such as bank transacting trustee business

I a trustee is not appointed or not existing, official Trustees will be appointed by a competent Government Authority.

The beneficiaries of a life insurance policy affected by the MWP Act can be:

• The wife alone
• One or more children or
• The wife and one or more children jointly

Insurance under the MWP Act is free from

• Court attachments
• Tax attachments and
• Creditors

The policy cannot be amended or surrendered

Applications of Life Insurance

Married Women's Property Act 1874

1.Section 6 of this act provides that a life insurance policy that has been taken out bya married man on his own life, for the benefit of his wife and children, shall be deemed to be a trust and will be outside the control of the life insured, his creditors, court attachment etc.

2.A trust is a legal agreement, which has 3 parties associated with it-

• A trustor
• A Trustee and 
• A beneficiary

3.A Trustee must be a major(18 years and above) and their consent to act as a trustee should be taken and added to the policy as an endorsement.

4.The trustor, or the author of the trust is the person who forms the trust.

5.The trustee can either be a person or an entity who/which is responsible for managing the assets, the ownership of which is entrusted to them as a 'trust' by the trustor.

6.The beneficiary is an individual/ entity who receives the benefits from the trust.

Common Definitions in Health Insurance

Family Floater Policies:

The sum insured floats among the family members. Family floater covers husband,wife,children,parents and parents in law.The eligibility as per the age factor varies from insured to insurer,from as young as 3 months to 80 years and above.

Group Health insurance policy :

This policy available to groups/associations/institutions/corporate bodies and provides insurance protection. The employees are not a direct party to the insurance contract. Insurance company issues one master policy covering all the members of the group.

Domiciliary Hospitalization :

Certain insurers offer Domiciliary Hospitalization benefit. This refers to medical treatment for a period exceeding 3 days, for want of accomodation in a hospital or the condition of patient does not permit transfer to a hospital.

The premium is based on age & sum assured selected.

Cashless Facility :

Costs of treatment are directly made to the network provider by the insurer

Free look in period of 15 days is applicable

30 days Grace period is allowed for renewal

Common Definitions in Health Insurance

Inpatient :
Insured who undergoes treatment after getting admitted in the hospital

Outpatient:
Insured who undergoes treatment without getting admission/staying in the hospital

Day care centre:
Diseases do not require more than a day's stay in the hospital or less than 24 hrs at times Eg.cataract

Third Party Administrator(TPA):
It means any person who is licensed under the IRDA(Third Party Administrators - Health Services) Regulations, 2001 by the Authority, and is engaged for a fee or remuneration by an insurance company, for the purposes of providing health services.

Network Provider:
Hospitals enlisted by an insurer of or by a TPA & Insurer together

Portability:It is the right of the policy holder to transfer the policy with the same conditions from current insurer to the new insurer.

Pre existing Condition(PED): Existing illness before taking the policy with the same conditions from current insurer to the new insurer

Senior citizen:
Who has completed 60 yrs or above