Question 1

How much term cover do I actually need?

Accepted Answer

Take 15 to 20 times your annual income, add every outstanding loan (home, car, personal), add a lump sum for children's education and marriage, then subtract your existing savings and any employer cover. That figure is your target sum assured.

Question 2

Does the claim settlement ratio matter?

Accepted Answer

Yes, but read it alongside the amount-settled ratio and average settlement turnaround. Every insurer listed here settles over 98% of individual death claims by count. Honest disclosure at proposal stage matters more than a 0.3% ratio difference.

Question 3

What happens if I stop paying premiums?

Accepted Answer

A pure term plan lapses after the grace period (usually 30 days) and cover ends. Most insurers let you revive within 5 years by paying arrears with interest and, sometimes, a fresh medical.

Question 4

Should I choose return of premium?

Accepted Answer

Usually not. Return-of-premium variants cost roughly twice as much for the same cover. Buying pure term and investing the difference in an index or flexi-cap fund generally leaves you better off.

Question 5

Is my employer's group cover enough?

Accepted Answer

No. Group cover ends the day you leave, typically caps room rent, and rarely exceeds ₹5 lakh for a whole family. Keep a personal policy running alongside it so your waiting periods are already served when you need it.

Question 6

What are waiting periods?

Accepted Answer

Initial waiting is usually 30 days for any illness, 24 months for listed conditions like cataract and hernia, and 24 to 48 months for pre-existing diseases. Maternity typically has a 24 to 48 month wait.

Question 7

Individual or family floater?

Accepted Answer

A floater is cheaper when everyone is young and healthy. Once any member crosses 45 or has a chronic condition, separate individual policies often price better and avoid one claim exhausting the whole family's cover.

Question 8

What is a restoration or refill benefit?

Accepted Answer

If you exhaust your sum insured in a policy year, restoration reinstates it for unrelated illnesses. Plans like ReAssure 2.0 and Care Supreme offer unlimited refills, which is valuable for a family floater.

Question 9

What is IDV and how do I set it?

Accepted Answer

IDV is the current market value of your vehicle and the maximum you receive on total loss or theft. Setting it too low cuts your premium but underpays your claim. Keep it close to fair market value.

Question 10

Is zero depreciation worth it?

Accepted Answer

Yes for vehicles under five years old. Without it, the insurer deducts depreciation on plastic, rubber, and metal parts, often 30 to 50% of a bumper or panel replacement.

Question 11

What happens to my no-claim bonus if I switch insurers?

Accepted Answer

It stays with you, not the insurer. Share your previous policy and claim history and the new insurer applies the same NCB slab, up to 50% after five claim-free years.

Question 12

Does my policy cover the driver and passengers?

Accepted Answer

The owner-driver gets a compulsory ₹15 lakh personal accident cover. Passengers need a separate passenger-cover add-on, which is inexpensive and worth adding.

Question 13

How is the sum insured on the structure decided?

Accepted Answer

It is based on reconstruction cost, meaning built-up area multiplied by the current construction rate in your city, not the market price of the flat. Land value is never insured.

Question 14

Am I covered during renovation?

Accepted Answer

Standard policies exclude damage caused by structural alteration. Inform your insurer before major renovation so cover can be endorsed.

Question 15

Can tenants buy home insurance?

Accepted Answer

Yes. Tenants insure contents only: electronics, appliances, furniture, and personal valuables. The landlord separately insures the structure.

Question 16

How much cover do I need for a Schengen visa?

Accepted Answer

At least €30,000 (about ₹27 lakh) of medical cover valid across all Schengen states, with repatriation included. All Schengen-compliant plans listed here meet this.

Question 17

Can I buy travel insurance after my trip starts?

Accepted Answer

No. Cover must be purchased before departure. Most insurers require it at least a day before the flight, and trip-cancellation cover needs to be bought well ahead to be meaningful.

Question 18

Are adventure sports covered?

Accepted Answer

Not by default. Skiing, scuba diving, bungee jumping, and trekking above set altitudes need an adventure-sports add-on.

Question 19

How is this different from term insurance?

Accepted Answer

Term insurance pays only on death, from any cause. A personal accident policy pays on accidental death and also on disability, including temporary disability, where it replaces your income week by week while you recover.

Question 20

Is it covered if the accident happens at work?

Accepted Answer

Yes. Personal accident cover is 24x7 and worldwide, at work or otherwise. Only occupations declared as hazardous need a specific occupation class and higher premium.

Question 21

How much cover should I take?

Accepted Answer

Ten to fifteen times your annual income is the common benchmark, which keeps your household running through a long recovery without touching long-term investments.

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