Clarifications required for life insurance and health insurance rules ?

POSTED BY kunalagg ON December 10, 2013 10:39 am COMMENTS (3)


My name is Kunal. I am from Gurgaon, 23 years old, my income is 10k per month.

I want to buy a term insurance of 1 crore for myself. I have following questions:

  1. I heard somewhere that one can buy insurance upto 20 times his yearly income which means that one can only take 1 crore cover if he have 5 lac yearly income. Is this really a case?
  2. Should I buy 1 crore cover from single company or 50-50 lacs from two different insurers?
  3. Is there any policy available which provides critical illness rider with term plan? If yes, will premium amount will still remain constant till the maturity?

I also want to buy a good health insurance for myself, I don’t have much knowledge on this..

  1. I have “Employee State Insurance” cover with my company but I don’t have any idea how good it is and what is covered under it and what will happen with this cover if I switch my job. Can’t find any post on this either. Any help on this? Is this insurance enough or should I buy another?
  2. I read a post where ‘Nagrik Suraksha Insurance’ was mentioned as a awesome and hidden health insurance plan. According to my understanding, it only covers accidents. Is it true? If yes, isn’t it a personal accident insurance and not health insurance or both of them are same things?
  3. How much cover and which policy is best for me?


3 replies on this article “Clarifications required for life insurance and health insurance rules ?”

  1. ashalanshu says:

    Dear Kunal, why are you taking some time out to read past discussions here?



  2. swapnil.kendhe100 says:

    Dear Kunal,

    1. You are eligible to get insurance cover of
    27 times of your annual income if you go for LIC &
    40 times of your annual income if you go for HDFC.

    2) I don’t see any benefit of dividing insurance cover though you can divide it in two if you are not comfortable with one company.

    In any case you are not eligible to get 1 crore insurance cover.
    Even 50-50 lac cover from two different insurance companies is not possible because you have to declare your insurances with other insurance companies while filling proposal form. Not declaring your previous 50 lac cover while getting 2nd 50 lac cover is strictly not recommended.

    1. You are covered under ESI only till your income falls under ESI income eligibility limit which is 25000 per month.
    If you switch your job and your incomes crosses this limit then you will not be covered under ESI.

    2. Oriental Nagrik Suraksha is a personal accidental insurance policy and not a health insurance. You get 80% of SA as accidental SA and 20% of SA accidental hospitalization expenses.
    Maximum SA under this policy is 5 lac i.e 4 lac accidental death SA and 1 lac hospitalization expenses cover (premium Rs. 337 for one year).
    You should go for this policy.

    3. Since you are covered under ESI you don’t need Health insurance.
    But if you want better health services in case of medical emergency, then go for Max Bupa Health Companion. Premium will be Rs. 2132.


  3. Debojyoti Das says:

    Hi Kunal,
    I am not a expert but here is what my view to your questions:

    Calculation of how much Insurance cover I should have differs from person to person. However, it is always suggested to have a minimum of 8-10 times of your CTC. However, in reality, every year our salary also increases in small % . Therefore, calculate for yourself how much you want the cover to be as per your life style. With a 10K salary, if you ask for 2Cr term cover, you might get a rejection from insurance company. Therefore, analyze yourself. Buying TI from single/two depends on your choice again. What is important is the amount of information you provide is correct or not and how much. My take – divide into 2 – 50-50. I dont like to include any additional riders along with TI, as the premium increases hefty. If interested go for personal accidental policy and critical illness policy separately from general insurance companies.
    My personal take for Health insurance policy family floater would be to when you will be nearing marriage and not right now if your Employee covers you. If you have plan for covering parents, you can check out though a family floater from Oriental.

    Read past discussions which are very helpful for knowledge…all your questions were answered by experts previously.

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