Life Insurance Recommendations

Hello Dear Readers, Warm Greetings Of The Day, How Are You Doing ? We Hope You Have Landed Here Just Because You Are Very Keen In Knowing How Much Life Insurance Do I Need Rule Of Thumb, So Today We Are Sharing A Very Important Article On

¶ Life Insurance Recommendations ¶

We All Know That In Today’s Internet World All The Tech-Savy Or Computer Friendly People Goto  Various Search Engines Available On The Internet Like Goolge, BingRediff, etc. And Many A Times Even We Search On Some Of The Specific Life Insurance Companies Websites Like Policy Bazaar, Bank Bazaar, Cover Fox, Life Insurance Corporation Of India, Max Life Insurance, etc. Whenever They Have To Buy Life Insurance Online.

Our Today’s Discussion Is Totally Different As We Are Sharing The Information That What Is The Need Or Dave Ramsey Life Insurance Recommendations. That Is How Much Is Really Needed. So, Let’s Begin.

How Much Life Insurance Do You Need ?

Life Insurance Recommendations

Have You Ever Felt That How Much Insurance Do You Need? I Know Except Few People No One Thinks About This. Some People Have Already Taken Life Insurance Of ABC Insurance Company But Have You Ever Calculated That Is This Enough For You Or Not Or How Much Of It Is Beneficial For You? Usually We Contact With An Agent Of Insurance Company And Without Asking Many Important Questions And Sometimes Even We Don’t Check The Authenticity And Readily Take That Insurance Policy.

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For Instance You Might Have Several Policies But Are You Also Adequately Insured? You Need To Know This Not Only As An Individual But As A Customer Too But Particularly In View Of The Fact That A Majority Of Indians Are Still Either Uninsured Or Underinsured. The Basic Motive Is That Never Mix Your Insurance With Your Investment Because Your Life Is Very Precious And You Must Calculate The “Value Of Human Life”. term life insurance

Let Us Understand This With An Example:

“Your Future Obligations Towards Your Dependent Which You Need To Make It To Current Value”

For Example – Lets Us Consider Mr.Y’s Age Is 30 Years And His Wife Mrs.Y’s Is 25 Years And Her Life Expectancy Is Around 70 Years. We Will Try To Illustrate This With Common Expenses Of His Life Span.

  • Mr. Y Thinks That Rs 35,000 Per Month He Needs To Protect His Family (Excluding His Tax Liability)
  • Mr.Y Have Home Loan Of About Rs. 40,00,000 (Current Value)
  • Both Have A Child Whose Age Is Around 7 Years And They Need Around Rs. 17,00,000 In Current Terms For Their Child’s Future Education And Marriage Expenses

Then In The Above Case We Need To Calculate Each Value In Today’s Term Till The Life Expectancy Of Mrs.Y’s Life Span (It Is Assumed That Mrs.Y Is Financially Dependent On Mr.Y For Her Whole Life).

  • Now She Needs Approx 105,00,000 As His Household Expenses, Which Means That Rs. 105,00,000 Is Needed So She Can Lead His Life Till 70 Years Of Her Age With Expenses Being Rs. 35,000 Per Month, Which Is going To Increase With 6% (Inflation) Per Year. She Needs To Invest Rs. 1,05,00,000 Where She Will Generate Around 8%.

If He Died Suddenly His Family Gets Rs. 1,05,00000, What Can They Do With It? They Might Invest It Using An Income Diversity Strategy And May Earn 5%. That Amounts To Just Rs. 16,50,000, Of The Yearly Invested Income.

So, If You Earn Rs 16,50,000, In Salary, A Rs. 1,05,00,000 Term Policy Is Sufficient. But If Your Family Depends On More Than Rs. 1,05,00,000 Each Year, You Need More Coverage.

How Much Do You Save Each Month? If You Put Away Some Money Every Month And Live Within Your Means. In Fact, You Probably Don’t Need To Replace All Of Your Income, So This Brings Out The Fact That You Need Less Term Life Insurance.

You’ll Need To Conduct Your Own Series Of Calculations.

  • Your Spouse’s Earnings,
  • Taxes,
  • Earnings From Investments And
  • Inflation Also Plays An Important Part.

Given Below Is A Chart Which Will Help You In Calculating How Much Life Insurance Do You Need?

term life insurance quotes

“It is Important To Protect Our Families And The People Who Depend On Us, Says Wilson”. “Mostly Everyone Is Responsible And Loving, They Just Don’t Act Because They Think They Can Put Off Until Later.”

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