Don't go bankrupt in one accident.
For term insurance, you will have a much lower premium today which stays the same throughout your life time (as long as you keep renewing).
Premium goes up by Age, so best to do early
A lot of companies will try to sell you ULIP plans which are a mix of term + you get something if you don’t die at the end – but those tend to be super expensive.
Keep insurance and investment separate.
You should get a critical illness cover with your term insurance.
For eg. ICICI Pru life has a good plan for Term insurance.
IMO Health Insurance is the most tricky of them all. So you'll see more resources related to this topic.
When I was in a corporate job, this was one of the perks offered. But as a remote worker, we neglect this at our own peril because it's quite complicated.
The premium is the least important part. At the minimum, you need to look at exclusion criteria, pre-existing disease, room rent capping, waiting period, portability, gather brochures, compare and contrast them before you pick one.
It would also be possible to buy one with a premium that makes sense to you and extend that via Super Top-Ups rather than buying something with the largest premium.
Other important guidelines
⚠️ Medical insurance for older folks tends to be expensive and complicated especially if there are pre existing conditions. So reach out to all companies you possibly can with good settlement ratios and be upfront with the existing conditions.
Look at websites like Coverfox, Policy bazar to research plans. If possible, buy through them, they’re very helpful.
You can look at services like OneAssist if you have recently purchased a laptop ( < 3 months )
Or you can go with a home insurance where your electronics are covered as well. We had Saurabh recently dig deeper into this topic.
Finally decided to go with HDFC Ergo - for home / laptop insurance just because they were transparent in their pricing.
- Any portable electronics are not included in the general home insurance and you need to get it as an addon.
- Also, portable electronics cannot be > 30% of your SI — which meant I HAD to take a 10L policy.
- Added all laptops at home which came to ~ 3L So base policy was ~ 5K and 5K addon cover comes to ~ 10K for 1 year. (I should get GST back I hope). So roughly 8.5K
Ruchir answered the below questions in this session.
Topics that were covered during the 1 hour presentation include -