Protect your family.
Decode the policy.

Independent calculators, IRDAI benchmarks, and fine-print trap decoders to help you choose the right Term Life and Health Insurance in India.

Look past the headline

● 100% Unbiased & Private
Educational guide & calculator — Zero sales pressure

These calculations use standard actuarial benchmarks and IRDAI public disclosures. Always verify the insurer's Customer Information Sheet (CIS) and policy wording before purchasing.

How much Term Insurance do you need?

A pure term plan protects your family by replacing your future earning potential and wiping out all debts if the unexpected happens.

1. Calculate Your Cover (HLV)

Home loan, vehicle loan, personal loans
Mutual funds, FDs, stocks (exclude family residence)

2. Estimate Your Premium

Recommended Sum Assured (HLV) ₹2.05 Cr ₹2,05,00,000 Total Protection Pool
Estimated Term Premium ₹9,800/yr ₹817 / month · Just ₹27 per day
Income Replacement Pool
₹1.80 Cr
Liability Clearance
+ ₹35,00,000
Offset by Liquid Assets
- ₹10,00,000
Tax Deduction (Sec 80C)
100% Tax Deductible (up to ₹1.5L)
💡 Ditto & Policybazaar Rule: Always buy pure term insurance. Avoid Return of Premium (TROP) and ULIPs—they charge 2.5x higher premiums and invest in low-return funds.

Top Term Insurance Plans in India

Ranked by IRDAI Claim Settlement Ratio (CSR), settlement speed, and customer features.

How to Evaluate Health & Term Insurance and Avoid Costly Traps

Insurance in India is frequently sold as a tax-saving investment rather than pure financial protection. Policy Lens provides unbiased tools to calculate genuine life protection requirements and detect hidden restrictive clauses in mediclaim policies.

Step-by-Step: How to Use Policy Lens

  1. Calculate Term Life Need (HLV): Enter your age, annual take-home income, current debt liabilities, and existing liquid investments to discover your recommended pure term cover.
  2. Compare Mediclaim Policies Side-by-Side: Review waiting periods for pre-existing diseases (PED), restoration benefits, daycare procedure coverage, and no-claim bonus (NCB) terms.
  3. Test the Room Rent Trap Calculator: Input your sum insured and expected hospital room rent to check whether your policy will trigger severe proportionate deductions across doctor fees and surgery costs.
  4. Optimize Section 80D Tax Relief: Calculate statutory deductions under the Old Tax Regime for yourself, spouse, dependent children, and senior citizen parents.

Critical Insurance Traps to Avoid

1. The 1% Room Rent Proportionate Trap

If you hold a ₹5 Lakh policy with a 1% (₹5,000/day) room limit but stay in an ₹8,000/day room, the insurer proportionately slashes 37.5% across the entire hospital bill—including ICU, surgeon fees, and anesthesia.

2. Low Cover ULIP / Endowment Trap

Endowment policies yielding ~5% annual returns give inadequate ₹5L–₹10L life cover for hefty annual premiums. A standalone term policy gives ₹1–2 Crore cover for a fraction of the cost, leaving the rest to invest in index mutual funds.

3. Co-Payment & Disease Sub-Limits

Beware of policies with mandatory 20% senior citizen co-pay or sub-limits on joint replacements and cataracts, which force substantial out-of-pocket payments during hospital discharge.

Methodology & Mathematical Formulas

1. Human Life Value (HLV) Term Need:

Recommended Cover = (Annual Income × 20) + Total Debt Liabilities - Liquid Financial Assets

2. Proportionate Claim Deduction Formula:

Reimbursed Amount = Associated Medical Charges × (Permitted Room Limit ÷ Actual Room Tariff Paid)

Worked Practical Example

Case: ₹5,00,000 Hospital Bill with Room Rent Cap

  • Sum Insured: ₹5,00,000 with 1% room cap (₹5,000/day).
  • Actual Room Availed: Deluxe room at ₹10,000/day (2x allowable tariff).
  • Total Associated Treatment Expenses: ₹4,00,000.
  • Proportionate Payout: Insurer pays only ₹2,00,000 (50%). Patient pays ₹2,00,000 out-of-pocket despite having sufficient total sum insured!

Frequently Asked Questions (FAQs)

What is the difference between Term Insurance and ULIPs?
Term insurance is pure protection: low premium for high cover (e.g. ₹1 Cr for ~₹1,000/month). ULIPs and endowment plans mix investment with insurance, resulting in low cover and high management charges.
What is the room rent sub-limit trap in health insurance?
If your policy caps room rent at 1% of sum insured and you choose a higher room, hospitals charge higher rates for all doctors, tests, and surgery—and the insurer reduces the ENTIRE bill proportionately, leaving you with massive out-of-pocket costs.
How much term life insurance cover do I need?
A standard guideline is Human Life Value (HLV): 15x to 20x your annual income, plus outstanding loans (like home loans), minus liquid assets.
Can I claim tax deduction under Section 80D for parents?
Yes. You can claim up to ₹25,000 for self/family, plus an additional ₹50,000 for senior citizen parents (age 60+), for a total annual tax deduction of up to ₹75,000.

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