Publication details: Money Manager – CNBC Bajar – 18-08-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by Rajan Kapadia:-
I am 32 years old, married and a non smoker person.
My annual expenses amount to Rs. 8 lakhs and I have a home loan liability of Rs. 20 lakhs.
I have employer insurance of Rs. 50 lakhs.
I want to know how much term insurance I should buy?
Advice given:
- From your spending perspective Rs. 8 lakhs expenses imply a cover of at least Rs. 1.6 crores. Add to this your home loan amount. Hence consider at least Rs. 1.8 crores.
- From this deduct your employer insurance of Rs. 50 lakhs and any other savings/ assets/ investments you have.
- Thus from the facts given, you need term life insurance of Rs. 1.3 crores and the premium should be about Rs. 10,000 p.a.