The 15-Minute Insurance Audit That Could Save Your Family
Most people have insurance. Few people know if it’s actually protecting them.
You bought term insurance years ago. Health insurance is through your employer. Vehicle insurance auto-renews. Everything seems fine.
But is your term coverage still adequate? Do you know your health insurance sub-limits? Is your vehicle insurance comprehensive or just third-party?
Set a timer for 15 minutes. By the end, you’ll have answers.
Before You Start: Gather These
- Term insurance policy document (or login to insurer portal)
- Health insurance card or policy document
- Vehicle insurance papers (in your car or glove box)
- A notepad or phone to write down issues
Got everything? Start the timer.
Minutes 1-5: Term Insurance
Term insurance is your most important financial protection. It replaces your income if you die. Get this wrong, and everything else matters less.
Check 1: Is Your Coverage Enough?
The math: Your coverage should be at least 10-15x your annual income.
| Your Income | Minimum Coverage |
|---|---|
| ₹10 lakhs/year | ₹1-1.5 crores |
| ₹20 lakhs/year | ₹2-3 crores |
| ₹30 lakhs/year | ₹3-4.5 crores |
Add your home loan to this number. If you have a ₹50 lakh home loan, add ₹50 lakhs to required coverage.
Your policy says: ₹________ sum assured
Your income is: ₹________ per year
Multiple: _____ x (Should be 10+)
If the multiple is below 10, write down: “NEED MORE COVERAGE”
Check 2: Is Your Nominee Updated?
Who is named as nominee on your policy?
- Spouse
- Parent
- Ex-spouse (PROBLEM!)
- Someone who has passed away (PROBLEM!)
If nominee needs updating, write down: “UPDATE TERM NOMINEE”
Check 3: Does Your Family Know?
Can your spouse answer these questions without looking?
- Do you have term insurance? (Which company?)
- Where is the policy document?
- How would they file a claim?
If the answer is no, write down: “TELL FAMILY ABOUT TERM POLICY”
Check 4: Is the Policy Active?
When did you last pay premium? Check:
- Premium due date: _________
- Last payment: _________
If you’ve missed payments or are unsure, write down: “VERIFY TERM POLICY ACTIVE”
Minutes 1-5 complete. Note any issues found.
Minutes 6-10: Health Insurance
Health insurance is different—you’ll use it while you’re alive, often during emergencies when you can’t think clearly.
Check 1: Is Your Sum Insured Adequate?
Medical inflation is brutal. A heart surgery that cost ₹5 lakhs in 2015 costs ₹10+ lakhs today.
Rule of thumb: Minimum ₹10 lakhs sum insured per family. ₹15-25 lakhs if you’re in a metro city.
Your policy says: ₹________ sum insured
If under ₹10 lakhs, write down: “HEALTH COVERAGE TOO LOW”
Check 2: Who’s Covered?
Check your policy. Who is included?
- Self
- Spouse
- Children
- Parents (same policy or separate?)
If someone is missing who should be covered, write down: “ADD [NAME] TO HEALTH INSURANCE”
Check 3: Do You Know Your Sub-Limits?
Sub-limits can kill your claim. Many policies have caps on:
Room rent: Often 1-2% of sum insured per day
- Your limit: ₹______/day
- If you stay in a room costing more, you pay the difference PLUS proportionate deductions on everything else
ICU: Usually 2x room rent limit
If you don’t know your sub-limits, write down: “CHECK HEALTH SUB-LIMITS”
Check 4: Network Hospitals—Do You Know Them?
In an emergency, you need to know which hospitals offer cashless.
Quick check: Open your insurer’s app. Can you find network hospitals in your area?
If you don’t have the app or don’t know how to find network hospitals, write down: “DOWNLOAD INSURER APP”
Check 5: TPA/Helpline Number
In an emergency, your family needs to call this number.
Your TPA/Insurer helpline: ________________
If you don’t know it, write down: “FIND HEALTH INSURANCE HELPLINE”
Minutes 6-10 complete. Note any issues found.
Minutes 11-13: Vehicle Insurance
Vehicle insurance is often overlooked until you need it. A quick check can prevent surprises.
Check 1: Comprehensive or Third-Party Only?
Third-Party Only: Covers damage you cause to others. Does NOT cover your vehicle.
Comprehensive: Covers damage to your vehicle AND third-party damages.
Your policy type: ________________
If you have only third-party on a vehicle worth ₹5+ lakhs, write down: “CONSIDER COMPREHENSIVE INSURANCE”
Check 2: When Does It Expire?
Vehicle insurance that lapses creates problems:
- You’re legally required to have at least third-party
- Renewal after lapse may require vehicle inspection
- Previous NCB (no-claim bonus) may be lost
Your expiry date: ________________
If expiry is within 30 days, write down: “RENEW VEHICLE INSURANCE”
Check 3: Is Your IDV Realistic?
IDV (Insured Declared Value) is what you’d get if your vehicle is totaled or stolen.
Your IDV: ₹________________
Current market value of your vehicle: ₹_________ (approximate)
If IDV is significantly lower than market value, you’ll be undercompensated in a total loss. If significantly higher, you’re overpaying premium.
Check 4: Do You Have Zero Depreciation?
Standard policies deduct depreciation on parts during claims. Zero depreciation (or “bumper-to-bumper”) covers full cost.
Do you have it? Yes / No / Don’t know
If you don’t know, write down: “CHECK FOR ZERO DEP ADD-ON”
Minutes 11-13 complete. Note any issues found.
Minutes 14-15: Document Where Policies Are
This is the most neglected step. Your family can’t claim what they can’t find.
Where Are Your Policy Documents?
Term Insurance:
- Physical copy: ________________
- Digital: ________________ (email folder, cloud, app)
Health Insurance:
- Physical copy: ________________
- Digital: ________________
- Insurance card: ________________
Vehicle Insurance:
- Physical copy: ________________ (should be in vehicle)
- Digital: ________________
Write Down Key Numbers
On a single piece of paper or digital note:
INSURANCE QUICK REFERENCE
TERM INSURANCE
Company: ________________
Policy #: ________________
Sum Assured: ₹________________
Nominee: ________________
HEALTH INSURANCE
Company: ________________
Policy #: ________________
Sum Insured: ₹________________
TPA Helpline: ________________
VEHICLE INSURANCE
Company: ________________
Policy #: ________________
Expiry: ________________
Where to Put This
- Wallet (copy)
- Spouse’s wallet (copy)
- Home (prominent location)
- Phone (photo in notes)
Minutes 14-15 complete.
Your Audit Results
Timer done. Look at what you wrote down.
If Your List Is Empty
Congratulations. Your insurance is in reasonable shape. Set a reminder to repeat this audit in 6 months.
If Your List Has Items
Here’s how to prioritize:
Fix This Week:
- UPDATE TERM NOMINEE
- TELL FAMILY ABOUT TERM POLICY
- RENEW VEHICLE INSURANCE (if expiring soon)
- VERIFY TERM POLICY ACTIVE
Fix This Month:
- NEED MORE COVERAGE (get quotes, apply)
- HEALTH COVERAGE TOO LOW (get quotes)
- ADD [NAME] TO HEALTH INSURANCE
- DOWNLOAD INSURER APP
Research Before Deciding:
- CHECK HEALTH SUB-LIMITS
- CONSIDER COMPREHENSIVE INSURANCE
- CHECK FOR ZERO DEP ADD-ON
The One Thing to Do Today
If you only do one thing from this audit, do this:
Tell your family.
“We have term insurance with [company], ₹[amount]. Health insurance is with [company]. If something happens to me, the documents are [location]. For health emergencies, call [number].”
That’s one minute. It could save your family days of panic and confusion.
Deep Dives
Need more detail on specific topics?
Term insurance:
- 5 Things to Check in Your Term Insurance Today
- Term Insurance Claim Process
- When and How to Update Your Nominees
Health insurance:
- Your Health Insurance: What Your Family Needs to Know Before a Claim
- Insurance Claim Rejected? How to Fight Back
Understanding insurance vs inheritance:
- Why Your Insurance Isn’t Enough to Protect Your Family
- Nominee vs Legal Heir: The Complete India Guide
Schedule Your Next Audit
Put a reminder in your calendar: “15-minute insurance audit”
When:
- Every 6 months
- After any major life change (marriage, children, home purchase, job change)
- When renewing any policy
Why:
- Life changes; coverage needs change
- Policies expire or lapse
- Nominees become outdated
- New products may be better than old ones
Quick Reference: What Adequate Coverage Looks Like
| Insurance Type | Minimum Coverage | Check For |
|---|---|---|
| Term | 10-15x annual income + loans | Coverage amount, nominee, policy active |
| Health | ₹10-25 lakhs (metro: higher) | Sum insured, sub-limits, network hospitals |
| Vehicle | Comprehensive for valuable vehicles | Type, IDV, expiry date |
| Information | Who Needs It |
|---|---|
| Policy numbers | Spouse, trusted family |
| Document locations | Spouse, trusted family |
| Helpline numbers | Spouse, trusted family |
| Claim process basics | Spouse, trusted family |
Policy numbers, agent contacts, claim deadlines—your family will know exactly where to look. Anshin keeps your financial details organized and shared with the people who matter.