While working on our financial plan, one of the big questions that needs to be taken up is “How much life insurance do I need?”
Is there a thumb rule I can use to calculate the amount?
100 – Age?
20 times of annual salary?
or something else.
The good news is that you don’t need any more guesswork now.
Use this life insurance calculator to know how much insurance cover do you need to buy.
This life insurance calculator uses expense and liability replacement method to calculate the insurance cover amount. Basically, how much will your dependents need in your absence to fulfil their goals, live a financially free life and pay off any outstanding loans.
Go ahead and work out for yourself.
Life insurance is a crucial financial tool to help you take care of your family and dependents in your absence. It is an important part of any financial plan and is one of the first things that you should action upon.
Remember that all your life insurance cover should come only via a Term Plan and not any traditional investment policies or ULIPs.
Of course, you can claim your insurance premium paid for a term plan as a deduction under Section 80C and reduce your taxes too.
If you have any comments on the life insurance calculator, do send across to us at firstname.lastname@example.org.