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.
