For a policy of Rs 75 lakhs the premium is just Rs 28,660 per annum. Please check your figure. 28,660 * 25 = 716500 . Only Seven lakhs sixteen thousand five hundred premium for a policy of 75 lakhs.
RE:How much life insurance to buy?
by ANUJ DIXIT on Aug 21, 2007 10:48 AM Permalink
dear its a term insurance plan..... it is not a endowment plan which will give a maturity.... its a proper insurance plan with risk cover only
Re: How much life insurance to buy?
by dinesh chandiramani on Oct 06, 2009 03:28 PM Permalink
this plan should not be suggested to anybody...it has no old age recievable nor maturity.....i work for lic ,mumbai
I must say rediff always cite wrong examples in terms of its posts on insurance, tax savings & stuff...they should give exaples relevant to the mass of the people whose income is less than Rs. 3 lacs per annum....What can a person in this case do...?How much insurance CAN he buy after supposting his family needs & if he is the sole earner in the family....? Would all the laws applied in the article above be applicable in that case of an individual also...?
RE:Wrong Example citing....
by prasanna S on Aug 20, 2007 06:23 PM Permalink
Kaustubh,
This article clearly states how you could calculate how much insurance you require. It is as generic as possible. You should use some common sense and use principles described above to arrive at the figure for a 3lakh salary and corresponding family expenditure. In fact, for a person with 3lakh salary (and consequently minimum balance after expenditure), term cover makes the most sense.
RE:RE:Wrong Example citing....
by kaustubh ghare on Aug 20, 2007 08:05 PM Permalink
So how much should invest as a premium per annum if my monthly income does not exceed 20000 & there are 3 dependants?
while i agree that the sum assured should be equal to at least 5 times of your annual income, i dont agree for term insurance which is a pure expense. instead i suggest that one should go for whole life policy which is not only cheaper but also provides for any emergency requirements of funds during the lifetime of the insured. normally, these for these policies one has to pay premiums for a certain period after which the premium payment is optional.
RE:insurance
by MARC on Aug 20, 2007 05:35 PM Permalink
u would not have compared the costs for both. check the comparative rates for a term plan and a ULIP and then u will know how much more they are charging for the latter.
Re: insurance
by dinesh chandiramani on Oct 06, 2009 03:33 PM Permalink
firstly the sum assured should not be based on annual income,it should be based on annual expense so u can keep spendin or have the same expenses in case of death
RE:insurance
by Santanu De on Aug 20, 2007 06:20 PM Permalink
insurance is a pure expense anyway. any Endowment/ whole life/ ULIP will spend a part of the premium in covering for life risk, the rest will go towards investments. If you buy term cover, it means you can decide how to invest the rest of your disposable income.
