Term Insurance

1) For term insurance, does the insurance company take into account the health condition of the insured?

Reply: The life insurance company will increase the premium rate for a person who is in poor health. The standard rate apply to a healthy person.

2) I've bought a 10-year term insurance in place of a mortagage insurance just to cover my loan in case of mishap. But i've read somewhere that term insurance should be around 20 - 25 years, is my 10-year term, which is in line with my loan tenure, too short? I'm almost 40.

Reply: It is all right to buy a term insurance policy for the duration to cover a mortgage loan. You can buy a separate term insurance policy to cover the loss of earnings up to, say ,age 65 years.