If you have financial dependents, you should acquire term life insurance. If you die unexpectedly, your family may struggle to fund their living expenses, obligations, and future plans without your income. Term life insurance gives a one-time payout to help bridge the financial gap and maintain their stability.
Consider The Life Insurance Rule
So, how much money would your family require if your salary stops? According to the life insurance guideline, you should have at least ten times your current salary in life insurance. This number should include all of your debts and loans. This rule helps assess how much income your family will require to support their daily expenses if you are no longer present.
For example, if your annual income is Rs 5 lakh, you will require Rs 5 crore in life insurance to ensure that your family does not encounter financial difficulties and can maintain their existing lifestyle even in your absence.
Remember that your income will change over time, so examine your life insurance coverage every few years. This is an important step in ensuring your family’s financial security if you die unexpectedly.
How to determine the minimum sum assured
To choose the insurance policy its’ advised that you should calculate the present value of your long- and medium-term goals, as well as your annual income, in order to establish the minimum sum insured required from a life insurance policy. Next, deduct your present debts from the minimal amount guaranteed by the life insurance plan you are thinking about. It is best to select the insurance policy if the sum assured provided by the life insurance policy plus your existing liabilities equals the sum of your long-term and medium-term goal’s present value and annual expenses.
It is not, however, the only thing to take into account when choosing a life insurance policy. Here are some recommendations:
How to buy term insurance plan online.
You should check website which convenience, choice, and transparency online . So you can research, compare, and purchase policies at one platform like we usually do Amount, term length, and premium affordability are the main factors that you should consider
Consider your budget.
Term insurance provides comprehensive coverage at low costs; nevertheless, choose a plan that you can afford to keep.
Compare various plans and suppliers.
Don’t settle for the first option. Research and compare quotes from several companies to discover the finest coverage at a reasonable price.
Consider riders.
Riders are optional add-ons that can increase coverage, such as disability income or accidental death benefits. Choose riders who meet your exact demands.
At Investcorpus provides you all these factors so you can choose insurance policy conveniently at your home. You can contact us for more
