There are a few financial obligations which are highly essential and require special attention for example filing the income tax return (ITR), investing in the tax-saving instruments before the end of the financial year and so on. However, people may sometimes fail to take note of such essentials and miss them or make a mistake. Here are some of the financial essentials that you must not forget and if you have missed any of them you need to urgently take some important steps to avoid a financial setback in the future.

Disclosing The Material Facts When Buying A Health Policy

Do you know, that when buying a health insurance policy, it’s essential to disclose material facts such as your pre-existing health ailment and lifestyle habits like smoking, drinking, etc., to the insurer? Material facts are important for the insurer to decide the exact premium applicable in a particular case as well as to decide the terms and conditions that would apply during the policy period. When you fail to disclose the material facts when buying a health policy, the insurer gets the ground to take action according to their policy condition which may even lead to repudiation of the contract.

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So, what should you do if you have failed to disclose the material fact to your health insurance provider? It is upon the insurer to decide whether they would cancel the insurance or lay down additional terms and conditions. Also, at the time of renewal of the policy, you need to reveal the material facts once again and update about the changes in risk level. Before buying an insurance policy, ensure you are providing all the information correctly to the insurer and not hiding any information.

Mentioning The Nominee Details In The Investments

When you invest in instruments like mutual funds, shares, fixed deposits (FDs), etc., you get the chance to mention the nominee detail in it. If you didn’t mention a nominee, you can still do it anytime in the future date by contacting the service provider such as a mutual fund company for your mutual fund investments, the concerned bank for the FDs and through stock broker for the investment in shares. You can also update the nominee details or change the nomination in your investments in the future. The Securities and Exchange Board of India (Sebi) has made it mandatory to either mention the nominee detail in the demat accounts or to choose for opt-out option and not choosing an option can make the Demat account non-operational.

Paying The Health Insurance Premium Before The Renewal Due Date

Usually, the health insurance premium has to be paid annually or according to the frequency chosen by the policyholder. However, if the policyholder fails to pay the health insurance premium within the due date, the policy may lapse and cease to provide the risk cover. Normally, health insurance companies allow a grace period of up to 30 days after the due date to renew the policy before it lapses. Once the policy lapses, the accrued benefits such as no claim bonus and cover for pre-existing health conditions after the waiting period ends.

If you have missed the payment of the health insurance premium, do it within the permitted grace period. If you are a senior citizen, never miss the health insurance premium payment because it can be very difficult at your age to get a new health policy.

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The author is an independent financial journalist.