While looking to buy health insurance, have you ever stumbled across the term 'proposer'? At first glance it might seem misplaced or odd, but a proposer in health insurance plays an important role. A proposer refers to the person initiating the policy and taking responsibility for it. Why does the proposer matter? How is the role of a proposer different from that of the person who is actually insured? Let's find out in this article.
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A proposer in health insurance is the individual who applies for and buys the policy, either for themselves or someone else. That means the proposer may or may not be the person insured by the policy.
For example, if you buy a health insurance policy for yourself, you are both the proposer and the insured. But if you buy a policy for your spouse, child, or a dependent parent, the other person is the insured, while you are the proposer. Similarly, you can also buy a policy for someone, like a friend, provided that there is an insurable interest, such as a legal, emotional, or financial relationship. In these scenarios, as the proposer, you are liable to pay the premiums.
Even though the proposer may not be covered under the policy, they are the official point of contact between the insurance company and the insured individuals.
One of the most common questions people often ask while buying a policy is, “If I’m buying the policy, do I automatically become the insured person?” Not necessarily. While the proposer and the insured person can be the same, it's not mandatory.
| Proposer | Insured |
| Buys and manages the policy | Covered under the policy |
| Only covered by policy if included | Always covered |
| Pays the premium | May or may not pay |
| Legally responsible for the policy | Not responsible unless also proposer |
| Main point of contact for insurer | Contacted only for health-related claims |
The insurance company may agree to change the proposer but only in specific situations. However, mid-term proposer changes are not encouraged unless necessary. Some of the situations where this might happen include:
If the proposer passes away during the policy term, whether they were also covered under the policy determines what happens next.
In order to process the proposer change, the insurance company will ask for a formal written request, legal documents such as a death certificate, ID proof, or court orders, and a new proposal form. Usually, such changes are made at the time of policy renewal.
As the proposer you’re tasked with the legal responsibility to:
Being a proposer in health insurance, lets you control the policy. This means you can manage the policy selection, add-ons as well as take renewal decisions. Moreover, you get to decide whom to cover and under what terms, especially in a family float plan. As the proposer, you can claim tax deductions under Section 80D of the Income Tax Act, even if you are not the one covered. This includes premiums paid for parents, spouse, or children.
Being a proposer in health insurance is about taking responsibility, especially when you're managing a policy for someone else. Whether you're buying a family floater plan, insuring your elderly parents, or just starting with your own individual policy, understanding the role of the proposer helps you manage the policy with much clarity and commitment.
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