that you find out all you can about the kinds of cover available and understand the terminology. For instance, term life insurance policies offer death benefit only, whereas an endowment offers death benefit and also provides an avenue for safe and systematic savings.
What are the key drivers that make you save?
If you are looking at long term goals, then life insurance is probably the best solution as it allows for both savings and protection. Key drivers for savings could include your childrenís education, their marriage or similar needs for which you need to think and plan long term and invest in a plan that matures and gives you the financial reprieve when you need it most. If you have already planned for your children then you may need to consider your own retired life, and plan accordingly.
How much cover should I have?
The cover you need is directly proportional to your personal life situation as well as the lifestyle you and your family want to lead. Typically, the rule of thumb is to have a cover of 10 times your annual income. However, there is no hard and fast rule here. Each one has different goals and varying premium paying capability. One needs to be realistic though.
The first step in figuring out how much is right for you is to estimate how much your family would need to continue its current lifestyle if your absence. It is also important to understand what stage of life you are in Ė a single person has very few responsibilities; as a parent you would have different responsibilities; and if you are approaching retirement your needs will be vastly different.
So say, you are 38 years now and you want an income of Rs 75,000 per month when you retire at 58 years. At the same time in case of your untimely demise you might still want to ensure your spouse to have a hassle free retirement. How do you choose the right plan? This is where agent advisor plays an important role. Get your trusted advisor to come in and discuss the