A landmark move and a progressive one. That is the response to the
Supreme Court ruling that says insurance policies taken by
parents or guardians for disabled children should be allowed to mature once
the proposer turns 55 years old.
What this means is that the child will no longer have to wait until the
policyholder is dead to get access to the payment.
It is a positive step, say experts as it ensures the welfare of disabled
people who are dependent and may need financial help when their parents age
and are unable to provide for them anymore.
Jitendra Solanki, a financial planner, who specializes in
reaching out to families with disabled relatives, hopes the court order will
move the Centre into looking into framing policies for the financial
protection of disabled people.
The court’s decision is landmark and the Centre should definitely work
out a policy in this regard as advised by the court. There is also a lack
of insurance options for people with disabilities in India and that needs
change too. The Life Insurance Corporation (LIC) has also discontinued
products that were available for people with disabilities. –
Jitendra Solanki, Financial planner.
In many cases, a person with a disability is financially dependent on a
guardian or a parent. The provision of early policy amount disbursement is a
huge break especially for parents who are no longer able to work and provide
for their child’s daily needs.
“The Supreme Court’s view on the subject of payment of maturity amount – lump
sum or as annuity after the age of 55 years is favourable for all proposers
of such insurance plans. Moreover, a situation could arise where when the
incidence of claim arises, the beneficiary is incapable of claiming it due to
ageing, medical problems or lack of awareness regarding the existence of a
policy in his/her name. Getting the dues during the lifetime of the proposer
will ensure that funds are utilised for fulfilling the needs of the
beneficiary. Insurance companies come out with policies to address needs of
families affected by some form of disability but they are only a few in
numbers and are on offer only for a limited period of time. Having more
policies that address the needs of such families with annuity plans could
help in offsetting the medical or care-giving needs and alleviate the
problems of the proposer to some extent. “Prashant Singh, Parent of
child with autism.
The court order has come after petitioner Ravi Agrawal, who
is disabled filed an appeal. His parents had taken an LIC policy called
Jeevan Aadhar. It has also asked the Centre to look into such
scenarios for policymaking in the future.
“It would a great if there were insurance policies for people with
disabilities available. Parents would definitely opt for investments to
ensure safety of their children.” Dev Mehta, Parent.
For parents of disabled children, worries about medical expenses and future
security are a constant factor. The least the government can do is ensure
there are as many options made available as possible to enable them to secure
their children’s future in a hassle-free manner.
ALSO READ: Why financial planning is key when you have a child with a
disability
Source: https://newzhook.com/story/20981
