My income is Rs 2 lac p.a.,how much insurance do I need?

rajivkumar — GMT

Please help

Re:My income is Rs 2 lac p.a.,how much insurance do I need?

Dhruv Agarwala — GMT

The amount of life insurance that you need is a function of:
Your salary – what is the loss that your survivors should overcome in case you are not there
The number of financial dependants that you have
The liabilities that you have already incurred that you are trying to protect, like a home loan, or some personal loan you might have taken.
Finally, if you need insurance, then what you can afford as your annual premium after you have paid for your living expenses.
If you have no financial dependants such as parents, a wife or children, then you do not need insurance because if you are not there, then no one else’s lifestyle is affected by your loss.

However, if you have financial dependants, then you must get insurance. If you are not alive, what financial resources will your dependants need to survive? Your survivors will need their living expenses, children’s fees, rent etc, for the rest of their lives.
Often the insurance industry uses a simple rule that you should have at least 5x-10x your annual income as your total life insurance coverage. So, about 10 lakh to 20 lakh would be the range you should look at. If you can afford it, the annual premium you will have to have to pay will be around Rs 2,500 to Rs 5,000 if you get simple term insurance.

My income is Rs 2 lac p.a.,how much insurance do I need?

Rita — GMT

My income is Rs 2 lac p.a.,how much insurance do I need?