Common Questions About Insurance in India

Most financial advisors suggest covering 10-15 times your annual income, but it depends on your family’s expenses, debt, and goals. If you earn 10 lakhs yearly with a 20 lakh home loan, you’d typically want 1-1.5 crore in coverage to protect your family’s lifestyle and clear the loan.

Term insurance covers you for a fixed period (like 20 or 30 years) at low cost—it’s pure protection with no investment component. Whole life covers you for your entire lifetime but costs 5-10 times more because it includes a savings element. For most Indian households, term insurance is the smarter choice.

No, most policies have a waiting period of 24-48 months before covering pre-existing conditions like diabetes or asthma. Some insurers offer reduced waiting periods if you declare your condition upfront. It’s crucial to read your policy’s waiting period clause before buying.

The Insurance Regulatory and Development Authority of India (IRDAI) is your watchdog—they set rules that insurers must follow, ensure claims are paid fairly, and let you file complaints if something goes wrong. If an insurer unfairly denies your claim, you can escalate to IRDAI’s Integrated Ombudsman Portal for free resolution.

Absolutely—you should. They serve different purposes: term insurance replaces your income if you die, while health insurance covers medical expenses if you get sick or injured. A balanced household typically has both, plus a small emergency fund. Together, they create a solid safety net.

Insurers can reject claims for suicide within 12 months of buying the policy, non-disclosure of material facts, or if you die while committing a crime. However, they can’t reject for minor omissions or after 12 months have passed. If your claim is rejected, IRDAI lets you appeal within 30 days.