⏳
Loading cheatsheet...
Life, health, motor, term plans, riders, claims process, and tax-saving insurance strategies.
| Type | Description | Best For |
|---|---|---|
| Term Plan | Pure risk cover, no maturity | Young families, high cover at low cost |
| Endowment | Insurance + savings, fixed returns | Conservative investors |
| ULIP | Insurance + market-linked returns | Long-term wealth creation |
| Money-back | Periodic survival benefits | Liquidity needs |
| Whole Life | Cover till age 100, guaranteed payout | Legacy planning |
| Annuity/Pension | Regular income post-retirement | Retirement planning |
| Type | Description | Mandatory? |
|---|---|---|
| Health Insurance | Hospitalization & medical costs | Highly recommended |
| Motor Insurance | Third-party & own damage cover | Legally required |
| Home Insurance | Fire, theft, natural disaster cover | Recommended for homeowners |
| Travel Insurance | Trip cancellation, medical abroad | For international travel |
| Marine Insurance | Goods in transit coverage | For businesses/shippers |
| Crop Insurance | Weather & yield protection | For farmers (PMFBY) |
╔═══════════════════╦══════════════╦═════════════╦═══════════════╗
║ Need ║ Recommended ║ Cost Level ║ Tax Benefit ║
╠═══════════════════╬══════════════╬═════════════╬═══════════════╣
║ Family Protection ║ Term Plan ║ Low ║ 80C + 10(10D) ║
║ Retirement ║ Annuity Plan ║ Medium ║ 80CCC ║
║ Wealth Creation ║ ULIP ║ High ║ 80C ║
║ Medical Emergency ║ Health Plan ║ Medium ║ 80D ║
║ Vehicle ║ Motor ║ Low-Medium ║ No ║
║ Savings + Cover ║ Endowment ║ High ║ 80C ║
╚═══════════════════╩══════════════╩═════════════╩═══════════════╝# Term Insurance Cover Calculation
def calculate_cover(annual_income, dependents, existing_liabilities, years_to_retire):
human_life_value = annual_income * years_to_retire * 0.75
liability_cover = existing_liabilities * 1.1 # 10% buffer
education_fund = dependents * 2500000 # ₹25L per child
emergency_fund = annual_income * 2
total_cover = human_life_value + liability_cover + education_fund + emergency_fund
cover_in_cr = total_cover / 10000000
return round(cover_in_cr, 1)
# Example: ₹10L income, 2 dependents, ₹40L home loan, 30 yrs to retire
cover = calculate_cover(1000000, 2, 4000000, 30)
# Recommended cover: ~₹3.2 - 5 Crore| Feature | Term | ULIP | Endowment |
|---|---|---|---|
| Death Benefit | Full sum assured | Higher of fund/SA | Sum assured |
| Maturity Benefit | None (pure protection) | Fund value | Sum assured + bonus |
| Return Rate | N/A | 8-12% (market-linked) | 4-6% (guaranteed) |
| Premium for ₹1Cr | ₹500-1,500/mo | ₹5,000-10,000/mo | ₹8,000-15,000/mo |
| Lock-in Period | None | 5 years | 5 years |
| Flexibility | Low (fixed premium) | High (switch funds) | Low |
| Transparency | High | Medium (charges) | Low |
| Recommended | ✅ Yes | ⚠️ Only if understood | ❌ Generally avoid |
| Type | Coverage | Ideal For |
|---|---|---|
| Individual | Single person | Singles, bachelors |
| Family Floater | All family members | Families (spouse + kids) |
| Senior Citizen | Age 60+ specific | Parents, elderly |
| Top-up / Super Top-up | Above base cover | Enhancing existing cover |
| Critical Illness | Lump sum on diagnosis | Cancer, heart, stroke |
| Personal Accident | Accidental injury/death | High-risk professions |
╔════════════════════════════════════════════════════════════╗
║ SECTION 80D TAX BENEFITS ║
╠════════════════════════════════════════════════════════════╣
║ Individual + Family (spouse, children, self): ₹25,000/yr ║
║ Senior Citizen (60+): ₹50,000/yr ║
║ Super Senior Citizen (80+): ₹1,00,000/yr ║
║ Preventive Health Check-up: ₹5,000 within above limit ║
╠════════════════════════════════════════════════════════════╣
║ SCENARIO: Self (35) + Parents (62+ senior) ║
║ Self: ₹25,000 | Parents: ₹50,000 | Total: ₹75,000/yr ║
║ Tax saved at 30% slab: ₹22,500/year ║
╠════════════════════════════════════════════════════════════╣
║ SCENARIO: Self (65 senior) + Spouse (60+) ║
║ Self: ₹50,000 | Parents: N/A | Total: ₹50,000/yr ║
║ Tax saved at 30% slab: ₹15,000/year ║
╚════════════════════════════════════════════════════════════╝| Cover Type | What It Covers | Required? |
|---|---|---|
| Third-Party Liability | Injury/death/property to others | Legally mandatory |
| Own Damage (OD) | Damage to your own vehicle | Recommended |
| Comprehensive | TP + OD + personal accident | Best protection |
| Zero Depreciation | Full claim without depreciation cut | Add-on for new cars |
| Engine Protect | Engine damage from water/ingress | For flood-prone areas |
| Return to Invoice | Get full invoice value on total loss | For cars <3 yrs old |
| Roadside Assistance | Towing, flat tire, battery jump | Useful add-on |
| Consumables | Oil, coolant, bolts during repair | Cost-effective add-on |
╔═════════════════════╦════════════════════╗
║ Vehicle Age ║ Depreciation Rate ║
╠═════════════════════╬════════════════════╣
║ Not exceeding 6 mths ║ 5% ║
║ 6 mths - 1 year ║ 15% ║
║ 1 - 2 years ║ 20% ║
║ 2 - 3 years ║ 30% ║
║ 3 - 4 years ║ 40% ║
║ 4 - 5 years ║ 50% ║
║ Beyond 5 years ║ Negotiable ║
╚═════════════════════╩════════════════════╝| Rider | Benefit | Cost | Worth It? |
|---|---|---|---|
| Critical Illness | Lump sum on major illness diagnosis | 1-2% of base premium | ✅ Highly recommended |
| Accidental Death | Extra SA on accidental death | 0.5-1% of base premium | ✅ If high-risk job |
| Accidental Disability | Income on permanent disability | 1-1.5% of base premium | ✅ Recommended |
| Waiver of Premium | Future premiums waived on disability | 0.5-1% of base premium | ✅ Yes |
| Income Benefit | Monthly income for 10 yrs on death | 1-2% of base premium | ⚠️ Case-by-case |
| Term Rider | Additional term cover on same policy | Varies | ⚠️ Buy separate plan |
| Add-on | Benefit | Cost |
|---|---|---|
| Zero Depreciation | No depreciation on parts claim | ₹500-2,000/year |
| Super Top-up | Additional cover above deductible | ₹3,000-8,000/year |
| Maternity Cover | Delivery + newborn expenses | ₹2,000-5,000/year |
| OPD Cover | Out-patient consultation & tests | ₹1,000-3,000/year |
| International Cover | Treatment abroad | ₹2,000-5,000/year |
| Air Ambulance | Emergency air transport | ₹200-1,000/year |
Base Premium (Annual): ₹8,000 - ₹12,000
─────────────────────────────────────────────────
Critical Illness Rider: +₹1,500 - ₹2,500 (Recommended)
Accidental Death Rider: +₹800 - ₹1,200 (If needed)
Waiver of Premium: +₹600 - ₹1,000 (Recommended)
─────────────────────────────────────────────────
Total with Riders: ₹10,900 - ₹16,700
Total Cover: ₹1 Cr + ₹25L CI + ₹25L AD
Rule of Thumb: Keep rider cost below 25% of base premium.
If it exceeds 30%, buy a separate policy instead.STEP-BY-STEP: Health Insurance Cashless Claim
═══════════════════════════════════════════
1. INTIMATION (Within 24-48 hrs)
→ Call insurer helpline or use app
→ Provide policy number + hospital details
→ Get pre-authorization form
2. PRE-AUTHORIZATION
→ Hospital fills pre-auth form
→ Submit estimated treatment cost + doctor report
→ Insurer approves/rejects within 24-72 hrs
→ If partial approval: pay difference upfront
3. DURING HOSPITALIZATION
→ Keep all bills, prescriptions, reports
→ Inform insurer of any treatment changes
→ Ensure all expenses are documented
4. DISCHARGE & SETTLEMENT
→ Hospital sends final bill to insurer
→ Insurer pays network hospital directly
→ You pay non-covered items (cosmetic, etc.)
REIMBURSEMENT (Non-network hospitals)
═════════════════════════════════════════
→ Pay hospital bills first
→ Collect: discharge summary, bills, prescriptions,
investigation reports, claim form
→ Submit within 15-30 days of discharge
→ Insurer processes in 15-45 working days| Claim Type | Documents Required |
|---|---|
| Health (cashless) | Policy card, ID proof, pre-auth form |
| Health (reimbursement) | All originals, claim form, cancelled cheques |
| Term (death) | Death cert, policy doc, ID proofs, postmortem if needed |
| Motor (accident) | FIR, photos, repair estimates, license copy |
| Motor (third-party) | FIR, court summons, legal notices |
| Life (maturity) | Policy doc, ID proof, NEFT details, discharge form |
| Reason | How to Avoid |
|---|---|
| Pre-existing disease | Declare all conditions honestly at purchase |
| Waiting period not met | Maintain continuous coverage; port wisely |
| Incomplete documents | Use insurer checklist; keep organized records |
| Non-disclosure | Full medical disclosure in proposal form |
| Delay in intimation | Inform insurer within 24-48 hours |
| Policy lapsed | Set auto-debit; pay within grace period (15-30 days) |
| Excluded treatment | Read policy wording carefully; exclusions list |
╔══════════════════════════════════════════════════════════════╗
║ INSURANCE TAX BENEFITS (FY 2024-25) ║
╠══════════════════════════════════════════════════════════════╣
║ Section 80C (Max ₹1.5L combined with other investments) ║
║ Life Insurance Premium (max 10% of SA for traditional) ║
║ ULIP Premium ║
║ Pension Plan (80CCC): Max ₹1.5L within 80C ║
║ ║
║ Section 80D ║
║ Self + Family: ₹25,000 (₹50,000 if senior citizen) ║
║ Parents: ₹25,000 (₹50,000 if senior, ₹1L if super senior)║
║ Preventive checkup: ₹5,000 within above limits ║
║ ║
║ Section 10(10D) ║
║ Maturity/death proceeds TAX FREE if: ║
║ - Annual premium < 10% of sum assured ║
║ - Policy held for 5+ years (for ULIP/traditional) ║
║ - Term plan death benefit: ALWAYS tax free ║
║ ║
║ Section 80DD ║
║ Disabled dependent: ₹75,000 (₹1.25L for severe) ║
║ ║
║ Section 80DDB ║
║ Medical treatment (specified diseases): ₹40,000-1,00,000 ║
╚══════════════════════════════════════════════════════════════╝