Insurance Pro – Become insurance savvy

Priya (32), a marketing manager in Pune with a young daughter, wants to ensure her family is financially secure. Arjun (45), a self-employed Delhi consultant with minor health issues, wants clarity before buying health insurance.

• Term insurance: Priya learns term insurance is pure, affordable life cover. The quiz explains a sum assured of 10–15× annual income is a solid starting point. Track overall protection in the Wealth Wallet.
• Deductible & waiting period: Arjun discovers “deductible” (amount he pays before insurance kicks in) and “waiting period” (2–4 years for pre-existing conditions). Buying early is critical.
• Riders: Priya explores adding a critical illness rider — the quiz clarifies how riders enhance base coverage at marginal extra cost.
• Network hospitals: Arjun learns to use network hospitals for cashless claims — a key insight from the quiz. Track healthcare expenses in the Expenses Wallet.
• No-claim bonus: Both understand staying claim-free earns discounts or increased coverage in future renewals.
• Nomination: Priya learns to nominate beneficiaries for all policies — they override wills. See also the Legacy Builder for estate planning.
• Hints & explanations: When stuck, they use hints to decode terms like “exclusion” and “copay”. Detailed explanations after each answer reinforce learning.

• Buy pure term: Avoid investment-linked insurance (ULIPs, endowment plans). Buy term + invest the difference in mutual funds.
• Sum assured = 10–15× income: Factor in outstanding debts, dependants’ future needs, and inflation over the policy term.
• Family floater for health: Including spouse and children in a family floater is usually more cost-effective than individual policies.
• Buy early to beat waiting periods: Pre-existing disease waiting periods are 2–4 years. Buying young means coverage is ready when you need it.
• Disclose all health history: Non-disclosure is the #1 reason for claim rejection. Honesty costs a slightly higher premium; hiding issues can cost the entire claim. Per IRDAI guidelines.
• Add riders strategically: Critical illness and accidental death riders are often worth the extra 5–10% premium. Waiver of premium is useful for breadwinners.
• Review annually: Increase cover as your income grows, a child is born, or you take on a home loan. Insurance needs evolve.
• Nominate beneficiaries: For all policies — they override your will. Update nominations after marriage, divorce, or the death of a nominee.
• Prefer network hospitals: Always use insurer-empanelled hospitals for cashless treatment and smooth claims.