Abhishek Kumar on Insurance in the Media

Abhishek Kumar explained that the low premium works because risk is pooled across millions of passengers, and said the cover should be seen as a group accident benefit. He also set out key exclusions and common reasons for claim rejection.

Abhishek Kumar said such cover can be left out when the amount insured is small or the risk is remote, and cautioned sale shoppers to read the policy terms. He also explained how to ask for cancellation and a refund when cover is added without consent.

Abhishek Kumar pointed out the privacy concerns of usage tracking and cautioned that top-ups or penalties can erase savings for heavy drivers. He suggested estimating past mileage from service records, keeping a 15-20% buffer and checking whether add-on covers lapse.

Abhishek Kumar said student term cover makes sense when there is an education loan or dependants, but is not needed otherwise, and pointed out that total cover across policies should stay within human life value.

Abhishek Kumar said families should start with pure term cover for every earning member, then add a family floater, a super top-up, and critical illness and accident covers. He advised checking room-rent limits, waiting periods and nominee details.

Abhishek Kumar said working out a policy's internal rate of return helps compare it with other investments of similar duration. On ULIPs, he suggested weighing risk appetite, comparing them with separate term cover and mutual funds, and examining all charges.

Abhishek Kumar said a separate health corpus can meet costs insurance leaves out, such as waiting periods, sub-limits and consumables. He suggested around ₹5 lakh to ₹10 lakh, kept in liquid, low-risk instruments.

Abhishek Kumar suggested that seniors keep a medical fund in two pools, one for claim shortfalls and one for long-term caregiving. He put the total at ₹10 lakh to ₹18 lakh for a metro couple, held in options such as SCSS or liquid funds.

Abhishek Kumar explained that comprehensive motor policies usually pay for riot damage, life policies pay nominees when the person who died was not involved in the violence, and health plans usually pay for injuries unless the event is classed as war or terrorism.

Abhishek Kumar explained that many claim disputes arise because policyholders do not realise a new insurer runs its own underwriting before accepting them. He said he often hears from people who switched insurers and were surprised by a rejection.

Abhishek Kumar explained that term cover is needed while family members depend on one's income to meet goals or repay loans. He suggested choosing a policy term that runs until the longest financial responsibility ends.

Abhishek Kumar said a standard life policy pays for accidental deaths, including fires, if it is active and facts were disclosed honestly. He explained that an accident rider is not needed for this, noted the usual exclusions, and suggested adding personal accident and health cover.

Abhishek Kumar said the large upfront payment may make multi-year cover unsuitable for senior citizens and people with uneven incomes, and cautioned against financing the premium with a loan.

Abhishek Kumar cautioned that insurers may treat driving an EV through deep floodwater, or charging it after it has been heavily exposed to water, as negligence by the owner.

Abhishek Kumar said such plans turn insurance into a daily touchpoint but pointed out that a full premium return is hard to reach. He suggested matching each optional rider to a specific, near-term financial need.

Abhishek Kumar explained that a smaller base policy paired with a super top-up usually costs much less in total premium than one large policy, since the top-up pays only after the base cover is used. He also pointed out that buyers should check the no-claim bonus cap and what happens to the bonus after a claim.

Abhishek Kumar said insurance choices are often shaped by the aims and incentives of the selling channel. He explained that commission-driven selling can skip proper coverage analysis, and that an unbiased planner can match cover to life goals.

Abhishek Kumar cautioned that the market-linked part of such plans can pay less when equities fall. He said deferred annuities let a buyer fix today's annuity rate for income that starts later, but their returns may trail a diversified portfolio.

Abhishek Kumar explained that RBI rules bar banks from tying locker allotment to other products, and said customers can refuse, ask for the demand in writing and escalate to the RBI Ombudsman if needed.

Abhishek Kumar said customers without insurance face a significant coverage gap, as a bank's payout is capped at a multiple of the rent. He advised checking valuation requirements and exclusions, and keeping a digital inventory with photos and invoices.

Abhishek Kumar said homeowners can contest a rejection if an insurer labels a sudden pipe failure as seepage and offers no technical evidence. He also cautioned that insuring a home at market value rather than rebuilding cost can lead to a pro-rata settlement.

Abhishek Kumar pointed out that many policies exclude damage to homes left empty for long periods without telling the insurer, and said failing to keep an inventory and purchase invoices makes losses hard to prove.

Abhishek Kumar wrote this guest post on why he advised a friend to stop a life cover he no longer needed, and how readers can test whether their own term plan still serves a purpose.

Abhishek Kumar is the subject of the article's opening story: early in his career he nearly bought a money-back policy before working out that its life cover was far too small to protect his family.

Abhishek Kumar cautioned that traditional child plans may not keep pace with education inflation. He said term cover plus mutual fund SIPs gives more flexibility, and that child plans fit risk-averse parents who value certainty over growth.

Abhishek Kumar advised buyers to judge their own needs, ask questions, get promises in writing and resist pressure, and explained the complaint route from the insurer to the Bima Bharosa portal, the ombudsman and consumer courts.

Abhishek Kumar said such pitches amount to mis-selling, pointing out that they ignore policy charges, wrongly promise tax-free maturity on large premiums and use projections outside IRDAI rules; India Today cited his LinkedIn post.

Abhishek Kumar explained that when an airline cancels a flight, rules require the airline to refund passengers. He also suggested buying cover right after booking, since some benefits are offered only within a short window of the first trip payment.

Abhishek Kumar suggested that people working in high-risk areas ask insurers whether their location, occupation and bystander situations are excluded. He advised searching policy wording for terms such as terrorism, war and riots, and getting written confirmation rather than assuming cover.

Abhishek Kumar explained what wedding policies typically cover and exclude, said premiums depend on guest count, budget, venue and duration, advised full disclosure and careful reading of exclusions, and said cover can also help middle-class families.

Abhishek Kumar raised the issue in a LinkedIn post that the article cites, sharing client cases where families did not know of holdings or lacked nominations. He stressed nominations, documented wills, open family conversations and picking the right executor.

Abhishek Kumar explained that insurers group cities into zones and price by local treatment costs and claims data. He said most comprehensive policies already cover pollution-linked illnesses, suggested enhancing them through riders, and cautioned that zone pricing may penalise vulnerable metro residents.

Abhishek Kumar said the right sum insured depends on context, with metro families needing ₹10–15 lakh given medical inflation, and said micro cover can still help people avoid medical debt.

Abhishek Kumar suggested having an open talk with parents about their preferences before looking at assisted living or home care, since they may worry about the quality of care.

Abhishek Kumar, in a LinkedIn post the outlet cited, said the claimed profit ignores taxes, fees and travel costs, that professional traders close such price gaps quickly, and that moving silver across states without papers carries legal risk.

Abhishek Kumar explained that choosing between a standalone policy and a rider depends on cover needs and budget. He said a standalone policy offers wider cover and more flexibility, but at a higher premium.

Abhishek Kumar explained that premium changes must go through IRDAI's product process and apply to all holders of a product. He said clauses allowing changes after new health conditions conflict with IRDAI rules and selective hikes can be challenged.

Abhishek Kumar suggested that prospective home loan borrowers compare rates across lenders and weigh a fixed-rate loan as protection against higher interest if the repo rate climbs later.

Abhishek Kumar explained that sales incentives at every level drive mis-selling, that bank staff can pressure customers seeking loans or lockers, and that premium-linked commissions favour costly investment-linked policies over term cover.

Abhishek Kumar was cited among financial advisers who stress vigilance on claims, alongside steps such as keeping records, escalating within the insurer and approaching the Insurance Ombudsman.

Abhishek Kumar said the incentive structure drives mis-selling, pointed to the churning of old policies for fresh commissions, and explained that commissions tied to premiums push buyers towards costly investment-linked plans over term cover.

Abhishek Kumar suggested that policyholders check exclusions and co-pay terms for pollution-linked illnesses and make sure the policy has no room rent or disease-wise caps.

Abhishek Kumar explained that the lack of input tax credit may keep premium cuts below the full GST rate, depending on how large insurers respond, and said premiums already paid will not be refunded.

Abhishek Kumar said retirees who want a fixed pension and avoid market-linked products may consider annuities for lifelong income, but cautioned against relying on them fully as payouts may not keep pace with inflation.

Abhishek Kumar explained that such cases are common and set out an escalation path: keep records, seek written reasons for a denial, approach the insurer's grievance desk, then the Insurance Ombudsman and consumer court. He cautioned that resolution can take months.

Abhishek Kumar explained that insurers use the waiting periods and history-based premiums that IRDAI permits to offset expected claims, and said rejected applicants can escalate to the Insurance Ombudsman and then a consumer court.

Abhishek Kumar worked through the article's example, showing the GST saving on sample health and life premiums. He cautioned that insurers can no longer claim input tax credit, so they may not pass on the entire 18% reduction.

Abhishek Kumar suggested that existing policyholders whose life cover falls short of family goals should use the GST cut to raise their cover rather than simply pay less.

Abhishek Kumar shared how, in 2009, three overdue loans of another person with the same name and date of birth appeared against his PAN, and how proof from the banks got his report corrected. He also suggested using the free annual reports from bureaus to check one's score each quarter.

Abhishek Kumar said maternity cover is worth buying only when an employer policy does not already provide it, and cautioned that such riders carry waiting periods and sub-limits that buyers should check first.

Abhishek Kumar explained that term insurance is for earning members with financial dependants or loans, and that cover can be based on human life value. He said the policy term should usually end around retirement, at about 60 to 65, as longer terms add unnecessary cost.

Abhishek Kumar explained that zero GST would strip insurers of input tax credit, which they may recover through higher base premiums, and said a lower GST rate with the credit intact could save policyholders more.

Abhishek Kumar said first-time buyers often take only third-party cover without comparing policies. He suggested basing the IDV on market value, choosing comprehensive cover and only useful add-ons, and checking exclusions and claim rules.

Abhishek Kumar said NRIs with taxable income in India can claim Section 80C benefits on premiums, suggested cover of 10 to 20 times annual income, advised checking claim settlement records, medical check options and sum insured limits, and cautioned against delaying the purchase.

Abhishek Kumar explained the charges built into these plans, including premium allocation, fund management, administration and mortality costs, and pointed to high agent commissions and a focus on tax benefits as reasons people buy them.

Abhishek Kumar said ULIPs remain heavily mis-sold, with banks pushing them for high commissions and often presenting them as mutual funds. He explained that their many charges weigh on long-term outcomes and said they suit only a narrow set of investors.

Abhishek Kumar said life insurance keeps debts from falling on family or co-signers, that buying young usually means lower premiums, and that a death benefit can clear home, personal, card and education loans.

Abhishek Kumar wrote this guest post for freefincal, tracing the origin of the two-hour claim and urging policyholders to check IRDAI's published documents and their own policy wording.

Abhishek Kumar pointed out that delayed reporting can cost the insurer a chance to step in early and limit damage, and that delays may also raise suspicion of fraud.

Abhishek Kumar explained that two-hour hospitalisation cover fills the gap between inpatient and outpatient care by covering procedures that need hospital supervision without an overnight stay, while OPD cover handles routine visits.

Abhishek Kumar said life insurance products need explanation and hand-holding, noted that the same human push can lead to mis-selling, and said buyers still look for human validation that a digital channel cannot give.

Abhishek Kumar said many clients were considering cutting or stopping health cover as premiums rose, and that younger people often put it off. He cited paperwork errors and non-disclosure as common reasons for rejected claims, called GST on insurance a deterrent, and stressed keeping an emergency fund.

Abhishek Kumar cautioned that fixed payouts may not keep pace with inflation and that steep surrender charges limit liquidity. He said these plans can suit people aged 45 to 55 with other savings, but not those without health cover.

Abhishek Kumar said insurance generally protects better than a medical corpus, but suggested looking at alternatives if the premium grows too large relative to the cover. He also offered a benchmark for the premium as a share of household spending.

Abhishek Kumar explained that premiums paid by NRIs on life cover count as an export of service under GST law and so qualify for a refund, and pointed out that this does not extend to ULIP premiums.

Abhishek Kumar pointed out that borrowers are sometimes sold policies that do not cover the loan risk or that end before the loan does. He said bundling limits choice to the lender's partner insurers, and that the cover should be a term plan that clearly discloses its premium and exclusions.

Abhishek Kumar, founder of SahajMoney, said such policies have three key problems, noted that congenital conditions are excluded and a newborn must be added within 30–45 days, and pointed to policies with explicit NICU cover and employer group cover as options.

Abhishek Kumar, founder of SahajMoney, explained that a proposed mutual fund and term cover combination would keep its two parts separate, unlike ULIPs, which could make costs and benefits clearer. He noted a similar product once existed but no longer takes new applications.

Abhishek Kumar, founder of SahajMoney, explained that insurers update a list of hospitals excluded from cashless and reimbursement claims except in emergencies, and that for non-network hospitals the insurer negotiates rates case by case, failing which the patient pays and claims later.

Abhishek Kumar explained how the claim settlement ratio is calculated and suggested also checking the incurred claim ratio. He pointed out that after three years, Section 45 bars an insurer from rejecting a claim unless it proves deliberate fraud.

Abhishek Kumar said high earners gain because capital gains tax on such Ulips is below their slab rate, but pointed out the five-year lock-in and multiple charges, and suggested checking costs and whether the life cover is adequate.

Abhishek Kumar outlined key exclusions such as war, terrorism, wilful misconduct, precious items and contents older than 10 years. He explained that reinstatement value cover, though costlier, pays enough to rebuild, and cautioned that undervaluing a property leaves a gap in case of total loss.

Abhishek Kumar explained that payouts from these plans move closely with government bond yields. He cautioned that they may not beat inflation and offer little liquidity, and suggested risk-averse investors could treat them as part of long-term debt holdings.

Abhishek Kumar, a SEBI-registered investment adviser, explained that the incurred claim ratio shows how much an insurer pays in claims for each rupee of premium, and that a low ratio could mean either careful underwriting or many rejected claims.

Abhishek Kumar, founder of SahajMoney, worked through examples of the new special surrender value rules, showing a larger payout than before for a policy surrendered after four years and a refund of ₹31,295 on a ₹50,000 premium for exit after one year.

Abhishek Kumar, founder of SahajMoney, said buyers fall for 'double your money' pitches because of anchoring bias and overlook time, and that such policies should be judged by their XIRR.

Abhishek Kumar explained how splitting works in practice, giving the example of an agent advising a buyer to spread a ₹1 crore cover across four policies of ₹25 lakh each.

Abhishek Kumar, founder of SahajMoney, compared a term plan paying the family a monthly income with a regular term plan, noting the same premium could buy larger cover, and said the monthly-income plan may suit families not confident managing a lump sum.

Abhishek Kumar, founder of SahajMoney, said a surrender value paid within 48 hours looks attractive but urged policyholders to check for any clawback if LIC rejects the assignment, and said investors buying the trust's certificates should bear LIC's stance in mind.

Abhishek Kumar said the change would help policyholders who plan to pledge their life insurance policy for a loan. He also pointed out that these are secured loans, but a missed loan repayment or premium could cause the policy to lapse.

Abhishek Kumar, founder of SahajMoney, worked through examples showing a policyholder exiting after four years would get about ₹1.55 lakh under the new norm against ₹1.2 lakh earlier, supplied the article's surrender value table, and called the change a welcome step for consumers.

Abhishek Kumar, founder of SahajMoney, explained that retail policies can now be cancelled only for established fraud with seven days' notice, not for misrepresentation or non-disclosure as before, and that compulsory motor cover can now be cancelled for total loss as well as double insurance.

Abhishek Kumar, founder of SahajMoney, explained the earlier refund scale for cancelling a health policy: 75%, 50% and 25% of the premium for cancelling within one, three or six months after the free-look period.

Abhishek Kumar, founder of SahajMoney, noted that cover during the grace period was earlier optional and offered by only some insurers, but is now required of all insurers.

Abhishek Kumar said converting a policy to paid-up status suits those torn over surrendering or not needing cash immediately, freeing future premiums for other investments, but pointed out it is not ideal given the time value of money.

Abhishek Kumar, founder of SahajMoney, said most withdrawn variants match the replacement plan on features, suggested exploring porting at least 45 days before renewal for a higher no-claim bonus, and linked the move to product consolidation.

Abhishek Kumar, founder of SahajMoney, said a plan that ignores rising health premiums can derail goals, called a deductible option a last resort, and warned that porting only for a lower premium may not work for long.

Abhishek Kumar pointed out that the regulator had left surrender value rates unchanged, and said policyholders who regret a policy should get past the sunk cost fallacy and surrender it early.

Abhishek Kumar pointed out that IRDAI kept surrender values largely unchanged after its consultation paper, so policyholders exiting early will still get little back.

Abhishek Kumar, founder of SahajMoney, said IRDAI's final rules keep early surrender values low, which favours insurers, and that many policyholders may stay in costly non-term policies to avoid a sunk cost.

Abhishek Kumar said such plans usually cost close to twice a pure term plan, and cautioned that the extra premium could earn more if invested elsewhere over the same period.

Abhishek Kumar worked out the inflation-adjusted cost of regular and limited premium payments for the article. He explained that buyers tend to compare only absolute totals, and said paying premiums in advance is unwise, even to claim tax deductions.

Abhishek Kumar explained that a name mismatch between EPF and Aadhaar records needs a joint declaration with the claim, and that incomplete KYC can lead to rejection. He advised completing KYC before filing an EPF claim.

Abhishek Kumar commented on the usual level of annuity returns and cautioned that a fixed payout that looks adequate in the first year can fall short later as inflation pushes up expenses.

Abhishek Kumar explained that an incurred claim ratio of 50% or below is an extreme case, and that a low ratio can reflect either careful underwriting or a high rate of claim rejections.

Abhishek Kumar explained that the proposal would let insurers set a premium threshold above which no surrender charges apply, leaving more money with policyholders who choose to exit a policy.

Abhishek Kumar said high surrender charges stem from front-loaded intermediary commissions in these policies. He also pointed out that policyholders often hold on because of sunk cost fallacy, even when exiting would serve them better.

Abhishek Kumar pointed out that if the annual premium is more than 10% of the policy's sum insured, the survival benefits from the policy become taxable.

Abhishek Kumar explained that ULIP charges are concentrated in the first five years, so leaving after the lock-in hurts, and said retirees should question the need for life cover and note that these plans do not provide regular income.

On Mint's Why Not Mint Money, Abhishek Kumar, SEBI Registered Investment Adviser and founder of SahajMoney, looks at new fund offers that are ULIPs rather than mutual funds, and whether investors should buy these combined insurance and investment products.

Abhishek Kumar, founder of SahajMoney, said insurance and investment should not be mixed, noting that ULIP cover is usually about ten times the premium, so adequate cover through one would take a person's entire annual income as premium.

Abhishek Kumar explained that a large share of early premiums goes to agent commission, so early surrender is not available, and said that after about three years the surrender value tends to begin near 30% of premiums paid.

Abhishek Kumar explained that money-back policies pay a large share of early premiums out as agent commission, which is why surrender is not offered in the first years and early surrender values are low. He suggested a term plan could provide cover at a lower premium.

Abhishek Kumar, founder of SahajMoney, said the proposal would help policyholders understand complex health policy terms, and outlined new sections on policy type, sum insured for individual and floater covers, and financial limits.

Abhishek Kumar, founder of SahajMoney, said the proposal would help policyholders understand complex health policy terms, and outlined new sections on policy type, sum insured for individual and floater covers, and financial limits.

Abhishek Kumar explained how mutual fund units can be gifted by moving them between demat accounts, except units still under lock-in, and noted that transfers across depositories have been allowed since December 2022.

Abhishek Kumar, founder of SahajMoney, said the add-on lets owners file one claim for several minor losses without a compulsory deduction and may suit those wanting peace of mind, but the extra premium may not be worthwhile on a tight budget.

Abhishek Kumar, founder of SahajMoney, noted that premiums for diabetics run at more than twice the non-diabetic rate, said people earlier refused a term plan or with HbA1c below 8 could consider it, and suggested comparing other insurers' term plans.

Abhishek Kumar suggested buying a personal health policy because employer covers often have limits, and also suggested a super top-up to deal with medical inflation or difficulty raising cover later due to a pre-existing condition.

Abhishek Kumar wrote the analysis in this guest piece, comparing a traditional insurance-cum-income plan with a term plan plus separate debt investment for a 25-year-old.

Abhishek Kumar of SahajMoney answered whether a long term-life policy is worth buying, using the example of a 25-year-old who plans to retire at 65 and compares cover to age 100 with cover to 65.