Protect What
Matters Most

A commonly used rule of thumb is 10–15 times your annual income. However, the right amount depends on your outstanding liabilities (home loan, car loan), your dependants' needs, existing assets, and how many years until your retirement. Your Nikunj RM conducts a proper income replacement and liability assessment to arrive at a specific number for your situation — rather than applying a generic formula.

Term insurance is pure life cover — you pay a low premium and the sum assured is paid to your nominee if you pass away during the term. There is no maturity or survival benefit. ULIP (Unit Linked Insurance Plan) combines life cover with an investment component linked to equity or debt market funds. Part of your premium goes towards life cover and part is invested. ULIPs have higher premiums and a 5-year lock-in. Term plans are better for pure protection; ULIPs can suit investors who want insurance and long-term investment in one product.

The claim settlement ratio (CSR) is the percentage of claims an insurer settled against total claims received in a year. A higher CSR (above 95%) means the insurer pays out more claims — a key indicator of reliability. When comparing term or health plans, the CSR of the insurer is one of the most important factors alongside premium, cover, and exclusions. Nikunj's RM highlights CSR data for every plan we recommend.

Yes — and it is highly recommended. Your Nikunj RM will review your existing policies and identify whether your current cover is adequate, whether any policies are underperforming, and whether gaps exist in your protection or investment goals. Many people are either underinsured (not enough life or health cover) or have outdated investment plans with poor returns. A review costs nothing and can significantly improve your overall financial position.

Premiums for life insurance (term, ULIP, endowment) qualify for deduction under Section 80C up to ₹1.5 lakh per year. Maturity and death claim proceeds are generally exempt under Section 10(10D) subject to conditions. Health insurance premiums are deductible under Section 80D — up to ₹25,000 for self and family, and an additional ₹25,000–₹50,000 for parents depending on their age. Consult a qualified tax advisor for your specific situation as tax rules are subject to change.

Buying online directly can sometimes offer slightly lower premiums. However, the real risk is in choosing the wrong plan, wrong cover amount, or missing critical exclusions — mistakes that only become apparent at claim time when it is too late. A broker like Nikunj adds value by helping with a proper needs assessment, comparing plans across insurers, helping you complete the proposal form correctly (reducing future claim rejection risk), and providing ongoing support for renewals and claims. For most individuals, this support outweighs any marginal premium saving.