Insurance, Explained Plainly
Every insurance tool on Strota in one place, and the words on a policy explained in one line each. Nothing here asks for your phone number.
Start with three questions. Does anyone depend on your income? Then you need term insurance. Can a hospital bill hurt your savings? Then you need health insurance. Do you own a vehicle? Third-party cover is the law, and own-damage cover protects the vehicle itself. Each tool below answers one question with numbers.
Insurance is sold hard and explained badly. This page is the opposite: plain answers, worked from public rules and the regulator's own data. None of the tools asks who you are.
Which page do I need?
| Your question | Go to |
|---|---|
| How much life cover do I need? | Term insurance calculator |
| Which health insurer is best on claims and complaints? | Health insurers compared |
| Which life insurer pays death claims best? | Life insurers compared |
| Which car insurer is best on claims and complaints? | Car insurers compared |
| Which insurers actually pay claims? | Claim settlement ratio, every insurer |
| What is my car or bike insured for, and what will I pay on a claim? | IDV and NCB calculator |
| How much tax does my health insurance save? | 80D calculator |
| What will my LIC policy pay at maturity, and is it a good return? | LIC maturity calculator |
| Should I surrender my LIC policy? | LIC surrender value calculator |
| What does LIC Jeevan Umang really return? | Jeevan Umang calculator |
| What will my Postal Life Insurance policy pay? | PLI and RPLI calculator |
| What do a ULIP's charges cost me? | ULIP calculator |
The order to buy in
1. Health insurance for the whole family, because one hospital stay can wipe out years of savings. 2. Term insurance if anyone depends on your income. 3. Vehicle insurance, which the law requires. Keep insurance and investing apart: a policy that promises both usually does each badly. The term calculator shows the difference in rupees.
Insurance words, in one line each
| Word | What it means |
|---|---|
| Sum assured | The amount a life policy pays when the insured person dies, or at maturity for a savings plan. |
| Term insurance | Pure life cover for a fixed number of years. It pays only if you die within the term, which is why it is cheap. |
| Premium | What you pay for the policy, monthly or yearly. |
| Nominee | The person who receives the money if you die. Keep it up to date. |
| Rider | An extra cover added to a policy for an extra premium, such as accidental death or critical illness. |
| Claim settlement ratio | The share of claims an insurer paid in a year. Higher is better; look at the amount paid too. |
| Sum insured | In health insurance, the most the policy pays in a year. |
| Waiting period | Time after buying a health policy before some illnesses are covered, often 2 to 4 years for existing conditions. |
| Co-pay | The share of each hospital bill you pay yourself, such as 20%, even when the claim is accepted. |
| Room rent limit | A cap on the hospital room you can choose. Take a costlier room and many policies cut the whole bill in the same proportion. |
| Deductible | The first part of a claim that you pay yourself before the insurer pays anything. |
| Super top-up | Cheap extra health cover that pays once your yearly bills cross a set amount. |
| Cashless claim | The insurer pays a network hospital directly, so you don't pay and claim back. |
| IDV | Insured declared value: the most a motor policy pays if the vehicle is stolen or written off. |
| NCB | No claim bonus: a discount of 20% to 50% on the own-damage premium for claim-free years. |
| Zero depreciation | A motor add-on that pays the full cost of replaced parts, without deducting depreciation. |
| Third-party cover | Covers damage you cause to other people or their property. Required by law for every vehicle. |
| Surrender value | What you get back if you stop a life policy early. Usually much less than the premiums paid. |
Key takeaways
- Health cover first, term cover if anyone depends on you, then the vehicle.
- Check how reliably the insurer pays claims before you buy.
- Keep insurance and investment separate.
Frequently asked questions
Which insurance should I buy first?
Health insurance, because a single hospital stay can cost lakhs. Then term life insurance if anyone depends on your income. Third-party motor cover is required by law for any vehicle you own.
Is term insurance better than an endowment plan?
For protecting your family, yes: the same cover costs a fraction of the premium. An endowment mixes cover and savings and usually returns less than a PPF account.
How do I check if an insurer pays claims?
Look at its claim settlement ratio from IRDAI's data, by number and by amount, and how many claims it pays within 30 days. Strota's claim settlement ratio page lists every insurer.