o you know what your human life value is? Your human life value can be defined as the amount of money that you will earn during the course of your lifetime. Let’s say your annual income is 10 lacs, over your working life of 40 years, you will earn at least 4 crores, not taking into account any potential increase in your income. This money will be used to take care of your family’s monthly expenses, your children’s school fees, your home loan, repayment family vacations, EMI for your car, medical expenses, care for your parents, and so on it is not a very comforting thought. But, if you were to pass away unexpectedly, your family will need a shield that can take care of their needs today, as well as in the future.
Life insurance can be that shield for your family. With your life insurance policy, the future that you dream for your family will remain just the way you want it to be, even if you are not around. So, how much life insurance do you need? To answer that question, let’s first account for the income you will earn during your working life through your salary. To that, you need to add any extra sources of income such as returns from the investments you would have made, your spouse’s income, income from rent and so on. Next, take into account your family’s likely expenses such as monthly bills school fees, home loan, EMIs and so on. Do remember that these expenses are likely to rise over time, thanks to inflation. When you compare these two figures, what you have is a summary of how much income you are likely to earn, and how much money your family is likely to need, to meet its expenses over time. If something were to happen to you, you will need to take care of the gap between your family’s income, and expenses.
Your life insurance policy can be the answer to that. A simple rule of thumb is that you should have around 8 to 10 times of your annual income, as your life cover. This can come either from a group insurance scheme, which your employer may provide or from your individual life insurance policy. If you’re thinking of the cost and assume that buying insurance would be expensive, think again because for a healthy 35-year-old male.
A life insurance cover of 1 crore for a 30-year period, would cost less than 20 dollars a month. That’s perhaps what you would spend on a weekend outing with your family. By buying life insurance with that same amount, you buy yourself a peaceful night’s sleep knowing that your family’s future is now secured. While the 8 to 10 times of income is an easy-to-remember formula, it is important that you sit with your insurance advisor to find out your exact insurance requirement. This will not take long and in just a matter of minutes, you will be on your way to getting your family protected.
For example, Prudential Life Insurance can provide the shield to ensure that your family’s future, will remain just the way you would want it to be. Getting yourself insured may be the wisest decision, that you can take today for your families tomorrow.