Insurance Guidance (Health & Term)
Insurance Guidance (Health & Term)
Insurance Guidance – Protect Mindfully
Insurance is the foundation to build a strong financial plan. It will protect your wealth and your loved ones against life’s uncertainties. At Mindful Wealth, we believe in right-sized insurance — not overdone, not under-covered — just enough to give you peace of mind.
Health Insurance Guidance
Health insurance covers medical expenses arising due to illness, accidents, or hospitalisation. It protects your savings and ensures timely care.
Health insurance basics you should know
- Sum insured - Maximum amount your insurer will pay annually.
- Family Floater - One policy for your whole family with a shared sum insured.
- Pre & Post-Hospitalization - Coverage for medical costs before and after hospitalisation.
- Daycare Procedures - Treatments that don’t require 24-hour hospital stay.
- Network Hospitals - Hospitals where you get cashless treatment.
- Waiting Period - Initial duration before coverage starts for certain illnesses.
- Room Rent Limit - Cap on room category; avoid policies with low caps.
- No Claim Bonus (NCB) - Reward for not claiming — increases your cover annually.
What factors to look for when choosing a health insurance policy
- Adequate Coverage: At least ₹10–25 lakhs in urban India (especially for family).
- Lifelong Renewability
- Cashless Network Hospitals near you
- Minimal Sub-limits on diseases, room rent, etc.
- Restoration Benefit: Refill of sum insured during the year
- OPD & Maternity Coverage (optional, depending on life stage)
- Portability: Ability to switch insurer without losing benefits
Mindful wealth health insurance tips
Start early. Health Insurance premiums are lower when you're young and healthy.
Top-up plans are highly cost-effective for larger health cover needs.
Disclose health conditions honestly; hiding them can cause claim rejection.
Review your policy every 3–5 years or after major life events (marriage, child, etc.)
Term Insurance Guidance
Term Insurance provides financial protection to your family in case of your untimely death. It’s pure life cover, not an investment.
Health insurance basics you should know
- Sum Assured - Amount your nominee receives on your death.
- Policy Term - Duration of coverage (typically till 60–70 years).
- Premium Payment Term - Duration you pay premiums (can be regular or limited pay).
- Riders - Add-ons like critical illness, accidental death benefit, waiver of premium.
What to consider while buying Term insurance
- Sum Assured: Typically 15–20× your annual income.
- Claim Settlement Ratio (CSR) of the insurer (>97% is ideal).
- Human Life Value (HLV) based coverage, not based on loan size alone.
- Affordable Premiums with no frills. Avoid return-of-premium plans.
- Choose online term plans which are cheaper and transparent.
Mindful wealth term insurance tips
Start early to lock in lower premiums—waiting can cost you more.
Regularly update your nominee details to ensure smooth claim settlement.
Buy your own insurance coverage—don’t rely solely on your employer's plan.
A term plan is meant to replace lost income, not to build wealth.
FAQs
Health Insurance FAQs
If all family members are under 40 and healthy, a family floater works. For elderly parents, buy individual senior citizen policies.
At least ₹10–15 lakhs (consider a ₹5L base plan + ₹10L top-up for affordability).
Yes, you can switch without losing waiting period benefits if porting between similar policies.
Term Insurance FAQs
Yes, if your family is financially dependent on you.
Till age 60–65 or until your major financial responsibilities (kids’ education, Home Loans, retirement corpus) are taken care of.
There's a grace period (15–30 days). Pay within this to avoid policy lapse.