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Home > Insurance
How much Insurance do you actually need?
THIS SECTION IS STILL IN THE CONSTRUCTION STAGE.  PLEASE VISIT US LATER.FOR WORKING ON THE INSURANCE CALCULATOR
Your annual house hold expenditure Note that we need the annual expenditure not the monthly one.
 Rs. (A)
The proportion of that annual expenditure specifically attributable to you i.e. your mobile bills and other personal expenses
 Rs. (B)
Net amount of that expenditure that should be made available to your family after your death
(A) - (B) (C)
Corpus of funds required to generate that level of income. We assume a long term interest rate of 8%
 C / 0.08 (D)

Your present value of net assets including the Value of Insurance policies, the realizable value of business and other financial assets assets in case that business is to be wound up etc.

 (E)
The required fund{ D – E) which invested at 6% Would provide enough cash to meet up to the living expenses of the family. (D) - (E) (F)
   





Steps to a Sound Risk Coverage Plan
The first step is to take a Health Insurance Plan for Rs 100,000 or more per individual.
Take a term Insurance policy with personal accident cover for the earning member of the family ONLY. Other policies can wait till you have taken a pure risk cover policy. Check whether you need Insurance at all. Use the Insurance calculator to decide on the level

Take a rider with critical illness cover. As many as twelve or more diseases can be covered at a very nominal premium today. These relate to heart, kidney, organ etc and after a disease has been diagnosed the Insurance is issued a cheques within 72 hours irrespective of whether he gets himself d treated or not

Once you are through with the above steps take an investment related Insurance product or get the non-earning members insured.





INSURANCE ONLY FOR EARNING MEMBERS
  • Insurance is a product of Risk and not of Return

  • Most of us are unaware of the kind of Insurance coverage one should have. The process is all random and arbitrary.

  • The following example of Mr. Avdesh Agarwal would make the process clear.
  • Mr. Agarwal's net worth is Rs 12,50,000 while his annual Income is Rs 210,000 .
  • Out of this Rs 30,000 relates specifically to him .
  • Thus if Mr. Agarwal dies his family would need Rs 1,80,000 per annum after his death.

    • At 8% he would need Rs 22,50,000 to keep his family going
    • But he already has Rs 12,50,000.  
    • To cover the shortfall he would therefore need an Insurance cover of Rs 10,00,000. The normal premium for an Insurance cover of Rs 30 lacs for a 30-year old male is Rs 3,000. Check for the Term Insurance rates
  • If non-earning members are insured just think who would pay their Insurance premium after the death of the earning member.

  • It may sound brutal but non- earning members should be insured only to the extent of the social and cultural costs, which we incur at the time of death of our near ones.

  • Some people get a joint life Insurance cover on auspicious occasions like marriage, birthdays, anniversaries etc. IS it fair to think of a consequence on auspicious days?

  • For returns Stocks and Mutual funds are always a better option.

  • NONE of the Insurance policies give a compounded return of more then 8% no matter what the savings plan are  


HEALTH INSURANCE
  PSU INSURERS CHOLA GENERAL INSURANCE
Age/ Cover 1 lakh 2 lakh 3 lakh 4 lakh 5 lakh 1 lakh 2 lakh 3 lakh 4 lakh 5 lakh
25 1,310 2,469 3,444 4,297 5,151 1,405 2,465 3,450 4,300 5,200
30 1,310 2,469 3,444 4,297 5,151 1,405 2,465 3,450 4,300 5,200
35 1,310 2,469 3,444 4,297 5,151 1,405 2,465 3,450 4,300 5,200
40 1,425 2,683 3,743 4,670 5,598 1,560 2,745 3,850 4,800 5,700
45 1,425 2,683 3,743 4,670 5,598 1,560 2,745 3,850 4,800 5,700
50 2,039 3,900 5,553 7,069 8,585 2,255 4,000 5,935 7,695 9,140
55 2,039 3,900 5,553 7,069 8,585 2,255 4,000 5,935 7,695 9,140
60 2,322 4,458 6,388 8,179 9,970 2,925 5,250 8,045 10,535 12,690
65 2,322 4,458 6,388 8,179 9,970 2,925 5,250 8,045 10,535 12,690
     
  BAJAJ ALLIANZ (1) SUNDARAM (2 )
Age/ Cover 1 lakh 2 lakh 3 lakh 4 lakh 5 lakh 1 lakh 2 lakh 3 lakh 4 lakh 5 lakh
25 1,045 1,948 2,755 3,610 4,370 794 1,278 1,776 - -
30 1,211 2,280 3,230 4,275 5,130 1,402 2,220 3,069 - -
35 1,211 2,280 3,230 4,275 5,130 1,402 2,220 3,069 - -
40 1,211 2,280 3,230 4,275 5,130 1,402 2,220 3,069 - -
45 1,330 2,565 3,610 4,655 5,700 2,039 2,781 3,813 - -
50 2,280 4,560 5,700 8,503 10,365 2,874 3,921 5,376 - -
55 2,280 4,560 5,700 NA NA 4,007 5,465 7,494 - -
60 - - - - - 4,597 6,270 8,598 - -
65 - - - - - 6,377 8,697 11,926 - -

Only base premiums; actual premium depends on health profile
(1)Silver Health plan for 46-75 years
(2)No cover over Rs.3lakh for individuals




LIFE INSURANCE (Term)
Annual premium In Rs (1)
Age Birla Sun Life HDFC STD ICICI PRU LIC MAX NEW YORK METLIFE IND OM KOTAK (2)
25 2,890.00 2,620.00 2,662.00 2,356.00 2,110.00 2,500.00 2,200.00
30 2,950.00 2,820.00 2,751.00 2,564.00 2,280.00 2,600.00 2,400.00
35 3,310.00 3,050.00 2,878.00 3,277.00 2,920.00 3,200.00 2,900.00
40 4,310.00 3,840.00 3,917.00 4,702.00 4,160.00 4,300.00 3,900.00
45 5,990.00 5,520.00 5,269.00 7,247.00 6,370.00 6,400.00 5,514.00
50 8,790.00 8,320.00 7,964.00 11,335.00 10,000.00 9,700.00 8,330.00

(1) For a 10-year policy for a sum assured of Rs.10lakh ;figures in bold represent lowest premiums for that age.

(2) For women and non-smoking men





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