Your queries: An individual needs insurance cover that is 10-15 times one’s annual income

Published: December 12, 2018 1:28:29 AM

Price of insurance policies online and offline differs from company to company and from product to product.

The primary objective of a life insurance plan is to protect your and your family’s life, dreams and goals.

By Pankaj Razdan

An individual needs insurance cover that is 10-15 times one’s annual income
– What kind of a life insurance policy do I take to keep my family of two dependents secure?
– Anand Singhdeo

The primary objective of a life insurance plan is to protect your and your family’s life, dreams and goals. Thumb rule says that an individual requires insurance cover that is 10 to 15 times of one’s annual income. Hence, you can arrive at an adequate sum assured post considering the above factors. A pure protection cover like a term plan is a must to secure your family’s financial requirements, while you can simultaneously opt for other saving and investing tools ensuring all-round protection of your loved ones. Further, you can do a comprehensive financial need analysis with the help of a financial advisor and can opt for the appropriate policies.

– Is it cheaper to buy life insurance policy online? How would I know whether the policy is suitable for me?
—Preeti Kapoor

Price of insurance policies online and offline differs from company to company and from product to product. You should analyse your financial requirements after evaluating factors like income, savings, liabilities and financial goals. This will help you identify the gaps and thereby opt for the right policy. You can then for the fitting life insurance product, online or offline.

– I have to secure money for my daughter’s marriage. Are there any good insurance plans? She is 15 years old now.
—Dharamvir

We all work towards building a corpus to finance our child’s future needs like education, marriage, etc. Life insurance plans can help one achieve such goals. Child plans are life insurance solutions that are specifically designed for this need serving the dual purpose of insurance cum savings. While the child receives a corpus post the policy term is over, what makes such plans special is that in case of any eventuality of the premium paying parent, death benefits are paid to the nominee and the rest of the premium is waived off. There is no lapse in the policy and the child gets maturity amount at the end of the policy term. There are a host of such products available in the market today. You can opt for one post evaluating not only the price but also the policy offerings, reputation of the insurance company, the brand and the company’s claim settlement ratio.

-The writer is MD & CEO, Aditya Birla Sun Life Insurance and Dy. CEO, Aditya Birla Capital. Send your queries to fepersonalfinance@expressindia.com

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