Insurance — Education & Calculators

How Much Life Cover Do You Need? Calculator

Monthly income (₹)₹80,000

Years until retirement25 years

Outstanding home loan (₹)₹30,00,000

Other loans — car, personal (₹)₹2,00,000

Children's education fund needed (₹)₹20,00,000

Existing life cover (₹)₹0

The Income Replacement Method — explained

The simplest rule: 10–15× your annual income. If you earn ₹10L/year, cover yourself for ₹1–1.5 crore.

A more accurate method adds: outstanding debts + future child education + spouse's income shortfall − existing assets.

This calculator uses the income replacement + liabilities method, which is more comprehensive than the simple multiplier.

Why term insurance? A ₹1 crore term cover for a 30-year-old costs ₹8,000–12,000/year. The same amount in LIC endowment costs ₹1,00,000+/year — 10× the premium for investment-linked returns that usually underperform a simple FD.

Term Insurance + MF vs ULIP — 20-Year Comparison Calculator

Monthly budget for insurance/investment (₹)₹10,000

Life cover needed (₹)₹1 Cr

Expected MF return (%)12%

ULIP annual charge % (mortality + fund)3%

What cover do you need? Interactive

Policy terms — tap any to understand it Interactive

80D tax deduction — how much can you save?

80D deduction is available ONLY under old tax regime. Zero benefit under new (default) regime.

Claim Settlement Ratio — Compare Insurers Interactive

Click any column header to sort · Data: IRDAI Annual Report 2023-24

CSR = how often claims are settled. A high CSR is necessary but not sufficient — some insurers settle 99% of claims but dispute the amount. Also check Incurred Claims Ratio (ICR) — above 80% means the insurer actually pays out most of what it collects (good for you as a customer).

Why is my claim being rejected? — tap to explore

Insurance Mis-Selling — How to Spot It & Your Rights Explainer

The most common mis-selling: ULIP as investment

ULIP = Unit Linked Insurance Plan. It combines insurance + investment. Agents push ULIPs aggressively because commission rates are 20–40% of first year premium (vs 5–8% for term plans). The real math: a ₹1 lakh ULIP premium loses 15–25% to charges in the first year. The same ₹1 lakh in an index fund loses only 0.1–0.2%.

ULIP hidden charges you must know

Charge	When	Typical %
Premium Allocation Charge	Deducted from premium before investment	5–15% in Year 1
Mortality Charge	Monthly — cost of life cover	0.5–2% of sum at risk/year
Fund Management Charge	Annual — on fund value	1.35–1.5%
Policy Admin Charge	Monthly fixed amount	₹60–₹500/month
Surrender Charge	If you exit before 5 years	Up to 6% of fund value
Total first-year cost	All charges combined	18–30% of premium

Your rights — Free Look Period

IRDAI gives you a 30-day Free Look Period (for policies sold online/distance) or 15 days (physical) after receiving the policy document. During this period you can return the policy and get a full refund minus medical expenses and proportionate risk premium. If an agent pressured you into buying, use this window immediately.

Red flags — you're being mis-sold if:

Agent says "this is not insurance, this is investment" for a ULIP
You're shown projected returns of 12–15% for a guaranteed plan
Agent rushes you to sign before month-end for "discount"
You're told to fill forms blank and agent will complete later
The policy is sold as a "tax-free FD" or "better than PPF"
No mention of surrender charges or waiting period

How to complain — IRDAI Bima Bharosa

Contact the insurer's grievance cell first (mandatory first step)
If not resolved in 30 days → file complaint on IRDAI's Bima Bharosa portal: bimabharosa.irdai.gov.in
For mis-selling (agent fraud) → also report to insurer's compliance officer in writing
For large claims disputes → approach Insurance Ombudsman (free, covers up to ₹30 lakh)