'Can I Get Back My Insurance Premium?'

Do you have mutual fund, insurance and personal finance-related queries?
Please ask your questions HERE and rediffGURU Naveenn Kummar, an AMFI-registered, IRDAI-licensed, qualified financial planner, and founder of Alenova Financial Services, will answer them.

Illustrations: Dominic Xavier/Rediff

Anonymous: My daughter turned 20 and is a student, with at least 3 years study left. For all practical purposes, she will be having her own business. She is covered with medical insurance provided by my company (under family medical insurance).
Should we go for a separate medical insurance for her and if so, for how much and which insurer?

If your daughter is 20, healthy, and essentially self-reliant with years of study (and possibly work or a business) ahead of her, yes -- it's a good idea for her to have her own individual medical/health insurance policy rather than relying solely on your employer's family cover.

Here's why it matters:

Your employer's policy is usually a 'family floater,' meaning the total sum insured is shared by all covered members. If someone else in the family needs care, her available coverage can shrink. Having her own policy ensures she always has her own dedicated cover and won't lose it if she changes location, job, or schooling situation.

How much cover makes sense?

For someone her age and health profile:

Aim for at least Rs 5 lakh as a starting sum insured. This is enough for most hospital stays and procedures without being costly in premium.
A cover of Rs 7.5 lakh to Rs 10 lakh gives extra peace of mind, especially if she lives in a big city with higher medical costs.
You can go higher than Rs 10 lakh depending on your comfort with premiums and risk tolerance.

What type of policy should it be?

Choose a standard individual health insurance policy under her name. Keep these points in mind when comparing options:

Medical inflation is real, and what seems like a high limit today might feel modest in a few years. Having a healthy cushion gives her flexibility.

Key things to check in any policy (doesn't matter which brand):

Sum insured: Start with at least Rs 5 lakh to Rs 10 lakh.
Cashless hospital network: A wide network near her college or home is very useful.
Pre-existing conditions waiting period: If she has none now, look for plans that start covering complications sooner rather than later.
Day-one cover for common illnesses: Many plans offer immediate cover for standard treatments.
Affordable premium with good claim history: Price matters, but ease of claims matters more.

Tax benefit:

You can claim the premium you pay for her policy as a tax deduction under Section 80D. That softens the cost a bit.

In short, getting her own policy gives her independence, uninterrupted coverage, and a defined sum insured just for her needs. If you want, I can help you estimate what the premiums might be for different cover levels based on her city and age.

Premal: Hello, i took an insurance policy in 2021 from TATA AIA SAMPOORNA RAKSHAK which has 12 premium for 12 years and the policy goes on for 80+years with 50 lakh insurance i paid my first premium of 1,35,000 yearly, but my fortune changed and i lost my handsome salary job and i was unable to pay that premium so i needed to stop that as my family primary expenses comes first. Sir the insurance company say you won't get this premium back as its already written in terms and condition book, but for me it's an huge amount. i would like to know from you that can i get this money from company legally or not and if so how can i get it back. Thank you.

I understand why this hurts. Rs 1.35 lakh is not a small amount, especially when life takes an unexpected turn. Let me explain this calmly and clearly so you know exactly where you stand and what is realistically possible.

First, the hard truth about this policy

Tata AIA Life Insurance Sampoorna Rakshak is a pure term insurance plan.

In term insurance:

There is no savings or investment component
The premium is paid only for risk cover
If the policy lapses early, there is no surrender value
Since you paid only the first year premium and could not continue, the policy lapsed. As per IRDAI rules and the policy contract, term plans do not refund premiums once risk cover has started, even for one year.
So from a legal and regulatory standpoint, the insurer is technically correct.

Can you get the money back legally?

Let me be very honest and practical.

1. Legal refund claim

Not possible, unless there was:

Mis-selling (false promises of return, savings, maturity value)
Incorrect information given in writing
Forged consent or wrong policy explained as an investment plan

If the agent verbally said things like:

'You will get money back'
'This works like an investment'
'You can withdraw later'

And you have proof (WhatsApp, email, brochure), then you may have a case.

Without proof, a court or ombudsman will side with the policy wording.

2. Free look period option

This allows refund within 15-30 days of policy issuance.
Your policy is from 2021, so this option is long gone.

What options are realistically left now?

Option 1: Escalation request (low success, but try)

You can still request a goodwill consideration, not a legal claim.

Write a calm email to:

Tata AIA Grievance Cell
Mention job loss, financial hardship
Request partial refund or conversion to paid-up (they will likely say no, but try once)
Do not expect much, but sometimes insurers offer ex-gratia rejection confirmation which helps closure

Option 2: Insurance Ombudsman (for peace of mind)

You may approach the Insurance Ombudsman, but I want to be clear:

Ombudsman follows policy terms
For term plans, verdict is usually in favour of insurer
This is more for mental closure than recovery

Why this feels unfair but is still allowed?

Think of it this way:

For one year, your family had Rs 50 lakh protection
The premium paid was for that one-year risk
Just like car insurance, unused years are not refundable

I am saying this not to justify the system, but to help you accept reality without guilt.

One important emotional point:

You did nothing wrong by stopping the policy.
Choosing food, rent, education, and survival over insurance is financial wisdom, not failure.
Many people continue policies out of fear and end up in debt. You didn't.
You handled a tough phase responsibly. That matters more than a lost premium.

Anonymous: Dear Naveen sir, I am 48 year having private Job. I have started investment from 2017, current value of investment is 82L and having monthly 50K SIP as below. My goal to have 2.5 Cr corpus at the age of 58. Please advice... 1. Nippon India small cap -Growth Rs 5,000 2. Sundaram Mid Cap fund Regular plan-Growth Rs 5,000 3. ICICI Prudential Small Cap- Growth Rs 10,000 4. ICICI Prudential Large Cap fund-Growth Rs 5,000 5. ICICI Prudential Balanced Adv. fund-Growth Rs 5,000 6. DSP Small Cap fund Regular Growth Rs 5,000 7. Nippn India Pharma Fund- Growth Rs 5,000 8. SBI focused Fund Regular plan- Growth Rs 5,000 9. SBI Dynamic Asset Allocation Active FoF-Regular-Growth Rs 5,000

Thank you for sharing the details clearly. Let me break this down calmly and practically.

Where you stand today:

Age: 48

Investment start: 2017
Current portfolio value: approx Rs 82 lakh
Monthly SIP: Rs 50,000
Time to goal: 10 years
Target corpus: Rs 2.5 crore at age 58

First, the good news. With an Rs 82 lakh base already built, you are not starting late. You are already past the hardest part, which is accumulation.

Is the goal achievable?

Yes, it is achievable with discipline and some fine tuning.

If your existing Rs 82 lakh grows at a modest 11 percent for 10 years, it alone can become roughly Rs 2.3 crore.

Your ongoing SIP of Rs 50,000 per month, even at 10 to 11 percent, can add another Rs 1 crore plus over 10 years.

So mathematically, you are on track. The key question is risk balance and fund structure, not return chasing.

Review of your current SIP portfolio.

Right now, your SIPs have:

• Heavy exposure to small cap funds

• Multiple funds from the same AMC

• One sector fund

• Very little clarity on core stability

Small caps give good returns, but at your age and goal timeline, too much concentration can increase volatility when you least want it.

What needs correction?

Reduce small cap overload: You have three small cap funds plus one focused fund. That is aggressive. Keep one strong small cap fund, not three.
Avoid duplication: Multiple funds from the same AMC don't add diversification. They increase overlap.
Sector fund allocation: Pharma fund is fine, but limit it to a smaller portion. Sector funds should never drive the portfolio.
Add a clear core: Large cap or flexi cap should be the backbone now. Stability matters more than excitement.

Suggested SIP structure (illustrative)

Out of Rs 50,000 monthly SIP:

• Large cap or Flexi cap: Rs 15,000

• Hybrid or Dynamic asset allocation: Rs 10,000

• Mid cap: Rs 10,000

• Small cap: Rs 10,000

• Sector or thematic (optional): Rs 5,000

This gives growth without sleepless nights.

Important next steps:

• Gradually rebalance existing investments, do not exit everything at once

• Shift from Regular plans to Direct plans if possible (this alone improves returns)

• Review asset allocation every year, not returns

• From age 55 onward, slowly start moving part of equity gains to safer instruments

Final thought:

Your goal of Rs 2.5 crore is realistic. You don't need aggressive bets anymore. You need consistency, structure, and risk control.

Thank you for sharing your details. Let me talk to you like I would to a friend, not in numbers first, but in reality.

You are 48, you started investing back in 2017, and today you've already built around Rs 82 lakh. That itself tells me one thing. You are disciplined and you stayed invested. That matters more than anything else.
Now about your goal of Rs 2.5 crore by 58: Honestly, this is not an unrealistic dream. In fact, you are closer than you think. With ten years still in hand and a steady Rs 50,000 SIP running, the foundation is already strong.
Looking at your SIP list, you've clearly leaned towards growth funds, especially small caps. That's fine, and it probably helped you build this corpus so far. But as you move closer to your goal, the game slowly changes. It's less about chasing the highest return and more about protecting what you've already built.
Right now, there's a bit too much exposure to small caps and some overlap between funds. When markets do well, this feels great. But when they correct, the same portfolio can test your patience and peace of mind.
You don't need to overhaul everything. Small adjustments are enough. Think of large cap or flexi cap funds as the steady engine of your portfolio. Mid-caps and small-caps should add growth, not dominate it. Sector funds like pharma are okay in small doses, but they shouldn't drive your future.
If you balance things a little better, your existing Rs 82 lakh has a very good chance of compounding close to your target on its own. Your SIPs then become the safety margin, not the lifeline.
The most important part comes after 55. That's when you slowly start moving some money to safer avenues so that a market fall doesn't hit you right before retirement.

You can ask rediffGURU Naveenn Kummar your questions HERE.

Naveenn Kummar's Disclaimer/Guidance:

The above analysis is generic in nature and based on limited data shared. For accurate projections -- including inflation, tax implications, pension structure, and education cost escalation -- it is strongly advised to consult a qualified QPFP/CFP or Mutual Fund Distributor (MFD). They can help prepare a comprehensive retirement and goal-based cash flow plan tailored to your unique situation.

Financial planning is not only about returns; it's about ensuring peace of mind and aligning your money with life goals. A professional planner can help you design a safe, efficient, and realistic roadmap toward your ideal retirement.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.