Always Have A Backup Health Cover

Sriram Iyer, Bengaluru

I have included my wife, son, and mother as dependents in the health insurance provided by my employer. I have been with the same company for around 18 years and never felt the need to buy a separate health policy. But, now at 42, I plan to switch jobs and realise that I may not have health coverage for some time. Is there a way I can turn my existing heath policy into a personal policy, or do I need to buy another policy?

Yes, it is always better to have a standalone policy, so that during job transitions or retirement, this policy remains in continuity and your health risk is managed. Given your age and current lifestyle, if you are healthy right now, buying health insurance should be a priority. That’s because if you develop any ailment, you may face a long waiting period and the existing diseases then might not get coverage. Always have basic health insurance with a sum insured that is at least equal to your annual earnings, and ensure that each family member has coverage equal to half of your annual income. For example, if your annual income is X, your basic health insurance should be at least X, and assuming there are three other family members, it should be X/2 + X/2 + X/2, and so on. You can buy individual and/or a floater or umbrella cover along with top-up options from the same health insurance company. Also, check your family’s medical history and consider taking higher coverage for any disease that might be inherited. The cost of a surgery usually starts from Rs 5 lakh, so get a good cover against this burden.

Hina Shah, CFP®, Financial Coach

Biswanath Sahu, Bhubaneswar

I worked in a company from 2004-05. It deducted Employees’ Provident Fund (EPF) from my salary, but when I left, I didn’t withdraw it. The company no longer exists. Is it possible to find out whether the funds are still there so that I can either transfer or withdraw it?

The revised Form 13 is the primary form for transferring your EPF from one employer to another. You must fill this form with details of your old and new employer and your EPF account details. The form is available on the official Employees’ Provident Fund Organisation (EPFO) website. You need to check your PF number from your previous employer’s salary slip and approach the EPFO office for assistance. They can provide a list of documents required for transferring the old EPF.

Suhel chander, CFP®, Handholding Financials

Diya Bhatt, Mumbai

I recently found some papers from my grandfather’s library and realised that they are a renowned company’s shares. There are 700 shares worth roughly Rs 10 lakh now. Does my father, who is the nominee, need to complete all the formalities for getting these dematerialised and transferred to his account, or can I get these transferred to my demat account? My father does not have a demat account, so he wants me to get them transferred in my name.

Any shares to be transferred should be in dematerialised form. For that, you need to provide the death certificate, original security certificates, other required documents, like know your customer (KYC), Form ISR1, ISR2, ISR3, etc., with bank attestation, to the depository participant (DP). Also, documents like probate, if required, to transfer the shares to your father’s name. Then, he needs to open a demat account to get these dematerialised. Next, he can transfer them to your account through a gift deed on stamp paper mentioning the ISIN number, name, quantity of the security, and submit the transfer form or delivery instruction slip (DIS) and other required KYC documents to the DP. Few DPs provide this facility online with minimum or no paperwork once securities are dematerialised. You may connect with a good lawyer to find out all legal formalities related to gifting.

Hina Shah, CFP®, Financial Coach