1. What does Insurance mean?

It is a method in which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a well thought out cover against financial loss arising on the happening of an unanticipated occurrence.

2. Do I need Insurance?

In this unpredictable world, everyone needs Insurance! Insurance plays an ideal guard against the occurrence of unfortunate eventualities. An insurance product aids, not just in moderating risks, but also helps you by providing a financial cover against unfavourable financial burdens endured.

3. How does General Insurance benefit me?

During accidents, illnesses, fires and in the other catastrophes of life, we are never prepared for the downsides. This is precisely the point where General Insurance can prove to be a boon. It provides the highly vital but often ignored protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns, but is a protection against emergencies. Moreover, specific Acts of Parliament like certain types of insurance (e.g., Motor Insurance and Public Liability Insurance) have been made mandatory.

4. How do I reduce the cost of buying Life Insurance?

The cost of a policy could be lowered if you

• Buy Insurance at an early age (while the risk is low)
• Insure yourself for a long period
• Insure yourself for a large sum assured; offer to pay premium annually, thereby receiving discounts
• Select a low cost policy like Term product, which offers higher sum asured and security to your family in case of your early death

5. How much of Insurance do I need?

It is imperative to have sufficient amount of coverage for each insurance policy. Even before zeroing in on the Sum Insured with regard to any asset or property insurance, the value of the asset based on market value or reinstatement value should be primarily taken into consideration. If the Sum Insured does not meet the requirements, the percentage representing the exposed segment of the asset has to be necessarily borne by the insured.

6. What are the broad elements that get covered under Insurance?

Almost anything and everything! Anything that has a potential financial worth in your life and has a possibility of getting lost, stolen, or damaged can get covered under insurance. Property (both movable and fixed), vehicles, cash, household goods, health, dishonesty and also your liability towards others can be covered.

7. Do I need cover right now?

Life’s full of uncertainties. Accidents and mishaps can occur almost anytime and at any place. It is therefore essential to recognise the risks faced and insure oneself against these at the earliest possible time. And that time is now!

8. What is underwriting?

Underwriting refers to the process that a financial service provider uses to assess the process of providing access to their product like insurance to a customer. Depending on the assessment, the risk for insurance contract is accepted and the premium rate is decided upon.

9. What is deductible?

In an insurance policy, the deductible - or excess - is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policyholder. The deductible must be met; that is, paid by the insured, before the benefits of the policy can apply.

10. How much should I plan for my retirement corpus?

It depends on a host of factors like the retirement age, life expectancy, and pre and post retirement life style. An amount that would produce a regular income and will not require compromising your pre-retirement lifestyle should be an adequate corpus.

11. How are Health Plans from Life Insurance Companies different from Medical Plans by Non-Life Insurance Companies?

Medical Plans of Non-life Insurance Companies are renewable on a yearly basis, and there are few that come with two year duration. The premiums depend on the age band and, therefore, change after one crosses a particular age limit. Premiums are always on a reimbursement basis, i.e., only the expenses incurred are reimbursed or can be claimed. The health plans of life insurance companies are for a longer duration. Once bought, the premium remains the same for the entire term of the plan or for a specific period, which may be up to five years.
Unlike medical plans, most health plans give a lump sum, irrespective of the expenses incurred.

"Insurance is the subject matter of solicitation"