Money Matters

Raghav Joshi

I live in Delhi. Last month, the final EMI of my five-year-old auto loan was deducted from my account. It has been more than 30 days but I have not received my NOC from the bank. Should I wait or approach the lender? What is the process of getting the hypothecation removed from the RC?

Naveen Kukreja - CEO& Co-founder, Paisabazaar.com

Car loan lenders usually issue No-Objection Certificate (NOC) or No Dues Certificate (NDC) stating the loan closure within two to three weeks of the payment of the last EMI. As it has already been more than 30 days in your case, I will suggest that you approach your lender for an update. Once you receive the NOC from the lender, submit it to the RTO (Regional Transport Office) concerned, along with Form 35 signed by you and the lender, to remove the hypothecation from your car's registration certificate.

Shruti Shah

We had a baby girl three months ago. We have a family floater health insurance plan for a three -member family which includes my four-year-old son, with sum assured of Rs 5 lakh. Now I want to add my daughter to this plan. Can I do that? Should I go for a new policy as I was also considering increasing the total cover?

Sanjay Datta, Chief - Underwriting, Claims, Reinsurance & Actuary, ICICI Lombard

Yes, a newborn baby can be added to your existing health insurance policy by paying the additional premium depending upon the terms and conditions of the policy.

It is advisable to increase the sum insured of your existing cover as opposed to buying a new plan as you can take advantage of the floater discount. In case you want to increase the sum insured, the same can be done at the time of renewal. Moreover, it will be easier for you to manage one policy for the entire family instead of having multiple plans.

Rajesh Kothari

I am 32 years old. My wife is a home maker. I have a daughter who is six years old and a son who is four years old. I am planning to buy a term plan of Rs 75 lakh. I want the insurance money to help my kids complete their higher studies in case something happens to me. How can I do this?

Aalok Bhan, Director and Chief Marketing Officer, Max Life Insurance

Good to know that you are considering buying a term plan which should ideally be the first step in financial planning. As I am not aware of your income and liabilities, I would not be in a position to comment on whether Rs 75 lakh would be a sufficient cover for you. As a thumb rule, you should have a term insurance that is at least 12-15 times of your annual income. You may get a more precise amount of cover required through the human life value calculator.

In addition, I suggest you buy separate child education life insurance plans for both your children. These child education plans offer triple protection - one, payment of life cover on death of the life insured; two, waiver of all future premiums, and three, payment of maturity benefits as per the original payout plan. While the term plan will ensure that your loved ones continue to maintain their lifestyle, the child education plans will ensure that there is no compromise on your children's education.

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