Insurance Audit

Step 1: Gather Current Insurance

Ask the user for existing policies:

• Term life: insurer, sum assured, premium, remaining term
• Health: insurer, sum insured, type (individual/floater/top-up), premium
• Endowment/money-back/ULIP: insurer, sum assured, premium, maturity
• Group/corporate cover: employer-provided cover details

Step 2: Term Life Gap Analysis

Calculate Human Life Value:

• (Annual income - personal expenses) × remaining working years
• Add: outstanding loans, children's education/marriage costs
• Subtract: existing cover, liquid assets

Compare existing term cover vs HLV. Flag gap.

Simpler: 15-20x income (age 30-40), 10-15x (40-50), 5-10x (50+).

Step 3: Health Insurance

Recommend:

• Base plan: Rs 5-10L
• Super top-up: Rs 50L-1Cr (very cheap above base deductible)
• Total cover: Rs 50L+ for families, Rs 1Cr+ for HNI

Flag: no room rent cap, restoration benefit, day care, no co-pay.

Step 4: ULIP/Endowment Evaluation

If client holds traditional/ULIP policies:

• Compare total charges vs MF + term alternative
• Post lock-in surrender analysis
• Better alternative: direct MF SIP + pure term plan

Step 5: Report

Insurance gap analysis, specific product recommendations, priority action items.