Okay, real talk —
Insurance = your adulting armor 🦸🦸
You pay a small amount called a premium 💸, and if life throws chaos at you (accident, illness, theft, death, or even losing your phone 😭), the insurance company pays you back or covers the loss.
Basically → you trade uncertainty for peace of mind.
You pay small now to avoid crying big later 😅
Because… adult life isn’t a rom-com, it’s a “what-if” simulator 😩
Insurance =
• 👪 Protects your fam when things go south
• 🏥 Covers massive hospital bills that can break your savings
• 💸 Helps you plan for goals safely
• 🧾 Saves tax under Sections 80C & 80D
• 🌍 Makes you part of India’s financial inclusion movement
So yeah — not optional, it’s a vibe of responsibility.
| 🔢 Type | 💖 Sub-Types | 💬 Covers What? |
|---|---|---|
| 1. Life Insurance | – Term Life – Whole Life – ULIPs – Money Back – Endowment Plans |
If something happens to you, your fam gets the payout 💔 |
| 2. Health Insurance | – Individual – Family Floater – Senior Citizen – Critical Illness – Top-Up |
Pays hospital bills so you don’t go broke 💉 |
| 3. Motor Insurance | – Third Party (must-have) – Comprehensive – Own Damage |
Covers your car/bike + others’ stuff 🚗 |
| 4. Home / Property | – Fire – Theft – Natural Calamities |
Saves your home sweet home 🏡 |
| 5. Travel | – Domestic – International – Student |
Lost baggage, trip cancel, med emergencies 🌍 |
| 6. Personal Accident | – Individual – Group |
If an accident causes death/disability 🩹 |
| 7. Marine | – Cargo – Hull – Freight |
If goods are damaged at sea 🌊 |
| 8. Rural / Agricultural | – Crop – Livestock – Weather |
Helps farmers fight nature’s mood swings 🌾 |
| 9. Miscellaneous | – Cyber – Credit – Pet – Mobile – Jewellery |
All your modern-day fears 💻 🐶 📱 |
Say hi to the big boss:
IRDAI — Insurance Regulatory and Development Authority of India 🇮🇳
👉 Created in 1999
👉 Keeps all insurance companies in check
💼 IRDAI Does Stuff Like:
• Gives licenses & monitors companies
• Protects customers from fraud
• Ensures fair pricing
• Approves new, cool insurance products
• Keeps insurers financially healthy (solvency rules)
Main Law: Insurance Act, 1938 (the OG rulebook 📜)
| 💥 Step | 🧩 What Happens | 💬 Real Talk |
|---|---|---|
| 1⃣ | Pick what you wanna cover | Life, health, car, home — your call |
| 2⃣ | Compare policies | Use PolicyBazaar, Coverfox, IRDAI site |
| 3⃣ | Apply & share your details honestly | Lying = claim rejection later 🚫 |
| 4⃣ | Pay premium 💸 | That’s your entry ticket 🎟 |
| 5⃣ | Policy issued ✅ | You get e-copy or paper doc |
| 6⃣ | Something bad happens? File a claim 😭 | Fill form, show proof |
| 7⃣ | Verification & payout | If all good, you get your money 🪙 |
| 🔤 Term | 💬 What It Means (No Jargon) |
|---|---|
| Premium | The ₹ you pay regularly to keep your cover active |
| Policy Term | How long your insurance lasts |
| Sum Assured | The payout your fam gets if something happens |
| Nominee | The person who gets the payout |
| Claim | You asking the insurer to pay up |
| Rider | Add-on benefits like accidental death or illness |
| Grace Period | Extra time after due date to pay premium |
| Lapse | Policy dies if you don’t pay 💀 |
| Surrender Value | ₹ you get if you quit mid-way |
| Exclusion | Stuff NOT covered (read these carefully 👀) |
| Cashless Claim | Hospital directly deals with insurer |
| Co-payment | You pay part of the bill, insurer pays rest |
| Deductible | Minimum amount you must pay before claim kicks in |
| 📜 Section | 💰 Benefit | 👤 Applies To |
|---|---|---|
| 80C | ₹1.5L deduction for life insurance premiums | Individual / HUF |
| 80D | ₹25K–₹50K for health insurance | Individual / HUF |
| 10(10D) | Tax-free maturity proceeds | Life Insurance |
| 80DD / 80DDB | Medical / disability deductions | Special cases |
1. 💻 Compare plans online — legit sites only (PolicyBazaar, Turtlemint)
2. 🔍 Read every detail — especially exclusions 👀
3. 📈 Check Claim Settlement Ratio (CSR) — aim for 95%+
4. 🧮 Pick coverage that fits your lifestyle + income
5. 📲 Go digital — app > paper any day
6. 🔄 Review yearly — new job? marriage? baby? upgrade time!
| 🏦 Scheme | 💰 Premium (₹ / Year) | 💸 Coverage | ⚙ Managed By |
|---|---|---|---|
| PM Jeevan Jyoti Bima Yojana (PMJJBY) | ₹436 | ₹2L (life cover) | LIC + Banks |
| PM Suraksha Bima Yojana (PMSBY) | ₹20 | ₹2L (accident) | Banks |
| Ayushman Bharat (PM-JAY) | Free | ₹5L per family | Govt of India |
| PM Fasal Bima Yojana | 1.5–5% of sum insured | Crop loss | Govt of India |
| Aam Aadmi Bima Yojana | ₹200 | ₹30K–₹75K | LIC |
| Atal Pension Yojana (APY) | Variable | ₹1K–₹5K monthly pension | PFRDA |
No more 200-page forms. Now it’s all:
• 📱 App-based policies
• ⚡ Instant approvals
• 🧠 AI-driven pricing
• 🪄 Paperless claims
• 🚘 Usage-based motor insurance (pay as you drive!)
• 🌍 InsurTech players: Acko, Digit, Plum, Turtlemint, OneAssure
Basically — insurance but make it aesthetic and smart 🧃
| ❌ Mistake 😬 | Why It’s Bad |
|---|---|
| Buying without reading details | Hidden traps inside fine print 🕵️ |
| Hiding health info | Instant claim rejection 🚫 |
| Choosing the cheapest | Cheap = weak coverage 💸 |
| Ignoring exclusions | You’ll regret it when claim denied 😭 |
| Forgetting to update nominee | Fam won’t get the payout 💔 |
| Missing renewal | Policy dies — zero protection ⚰️ |
| Relying only on job cover | Job gone = cover gone 🏃♀️💨 |
💬 Because adulting doesn’t have to be confusing:
• 🧍 If single — get health + accident cover
• 💏 If married — add life + family floater plan
• 🏡 If homeowner — add property insurance
• 🚗 Have a ride? Third-party is non-negotiable
• 📑 Store all policies on DigiLocker
• 🧾 Review once a year — life changes, so should your cover
• 💸 Start early — lower premium, higher protection