Dear Sreekanth,
I understand the difference between investment and insurance from your blog and to get the term insurance.
Ideal term insurance cover required for the head: thumb rule with respect to income and total expenses.
Ideal age upto insurance cover is required for the head: whether we can have cover upto the earning period only or extend it after as well.
1 Answers
Hi,
Quantum of cover - atleast 10 to 15 times of your annual salary.
Ideally you need to take into account - (Income replacement / expenses replacement + Financial liabilities (if any) + Financial obligations - existing life cover if any).
You can consider either income replacement approach or Expenses replacement approach.
Ideal age : upto your Retirement age and/or till the time you believe that you will have financial liabilities / financial obligations.
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