Ultimate Checklist for Insurance | Satishwar B., MD & CEO, Bandhan Life

This video, part of the Let's Talk Money series on CNBC-TV18, features a discussion on International Day for Insurance Awareness. The host, Suri Upad, is joined by industry experts Satishwar B of Bandhan Life Insurance and Amit Chhabra of Policybazaar to explain the importance of life and term insurance.

Key takeaways from the discussion include:

The Shift Toward Pure Protection: The experts highlight the growing awareness of term insurance as a vital, subscription-like "income replacement" tool, rather than a bundled investment product.

Defining Coverage Adequacy: A critical theme is ensuring families are protected. The experts suggest a rule of thumb: aiming for a sum insured between 20 to 25 times your annual income for younger individuals.

Navigating Eligibility and Underwriting: The discussion covers how insurers assess risks—evaluating financial stability and health status. They explain that even individuals with pre-existing lifestyle conditions can often secure coverage, though it may impact premium pricing.

Flexible Policy Features: Viewers are introduced to options like Return of Premium (ROP) plans, which refund premiums if the policyholder outlives the term, and the flexibility to exit a policy later in life when financial liabilities decrease.

Essential Riders: The experts emphasize adding riders for critical illness and accidental disability to provide a safety net for income loss that goes beyond basic death coverage.

Actionable Advice for Buyers:

The episode concludes with a practical checklist for prospective buyers: ensure accurate KYC documentation, maintain honest disclosure regarding health and lifestyle on application forms, and prioritize selecting a sufficient cover amount and tenure based on your specific life stage and liabilities has context menu