Insurance Needs Analysis

Insurance needs analysis is the assessment of an individual's or a family's insurance requirements — the term life cover, the health cover, the critical illness and the disability covers — measured against the family's liabilities, its income and its dependants, under the framework of the Insurance Act 1938 and the IRDAI regulations that govern the products and the intermediaries. The analysis is not a product pitch; it is the computation of the cover the family actually needs — the income replacement, the debt protection, the education and the medical costs — and the fit of the products to that need.

Insurance is the family's balance-sheet protection, and it is bought most inefficiently when it is bought without the analysis. The term cover is measured against the income it must replace and the liabilities it must retire; the health cover is measured against the family's medical costs and the policy's exclusions; the critical illness cover against the income loss of the serious diagnosis. Each product has a purpose, and the analysis is what matches the product to the purpose.

The cost of the missing analysis is the mis-bought cover: the investment-linked products sold as protection, the term cover far below the debt it must retire, the health policies with the exclusions the family discovered at the claim. The premium is a small cost against the gap between the cover and the need.

This service is for individuals and families reviewing their insurance. We compute the family's protection needs — the income replacement, the debt and the dependants — assess the existing policies against those needs, recommend the term, health and critical illness covers and the sums assured, review the policy terms and the exclusions, and structure the cover so the family's risk is actually covered.