Term life, health and motor insurance explained in plain English.
Insurance is a financial safety net. You pay a small annual amount called a premium, and in return the insurer agrees to pay a much larger amount called the sum assured if a specific event happens.
For most working adults in India, three policies cover 90% of real-world risk: term life, family health insurance, and motor insurance.
A term plan pays your nominee a lump sum if you die during the policy period. It is the cheapest form of life cover — a healthy 30-year-old non-smoker can get ₹1 crore cover for around ₹800–1,200 per month.
Rule of thumb: pick cover equal to 15–20× your annual income. Avoid bundling investment with insurance.
Hospital bills in metros can easily cross ₹5 lakh. A family floater plan of ₹10–25 lakh with no room-rent capping, low co-pay and a wide network of cashless hospitals is ideal.
Check for: pre and post-hospitalisation cover, day-care procedures, restoration benefit, and a no-claim bonus.
Third-party insurance is mandatory by law in India and only covers damages you cause to others. Comprehensive cover adds protection for your own vehicle against theft, fire, accidents and natural calamities.
Add-ons worth paying for: zero-depreciation, engine protect, roadside assistance, and return-to-invoice on new cars.