How much term insurance do I need?

Nov 20, 2017 | 12 months ago | Read Time: 2 minutes | By iKnowledge Team

It is common for anyone to overlook or procrastinate on making a financial plan. But, have you wondered, who will take care of your loved ones, just the way you do, after you? What if your children plan to complete their education abroad or find love and decide settle down? Who will give the month’s finances to your partner after you?

When it comes to securing the future of your loved ones, all you have to do is procrastinate later and plan your finances now. Getting a term insurance is not only affordable in the present, but also a great option for your future.

So, the big question is how much coverage do I need? There’s always an online Human Life Value (HLV) calculator to calculate the amount you need. But, here are four things that will help you figure out what will be the sum assured that your loved ones will get after you:

Income Replacement

If you are the sole earner in your family, you will need adequate coverage to replace the income in case of your death. Most experts recommend purchasing ten times your annual income as the insurance coverage. Such coverage will be adequate to financially secure your family for at least ten years in case of your demise.

Current and Future Expenses

You must consider your current and future expenses while calculating the insurance coverage you need. Some of these include your mortgage payment, other debt obligations, and monthly household expenses. You must also consider educational and marriage expenses of your children while calculating the insurance coverage.

Inflation

When you determine your future expenses, it is important to ensure you consider the rate of inflation. Because of the rising costs, your expenses today will not remain constant. Therefore, you need to ensure the rate of inflation is accounted for to determine your term insurance coverage.

Financial Situation

Once you determine the sum assured, choose a policy keeping in mind your current financial situation. The premiums should be affordable. It is recommended you choose a term insurance premium calculator to help determine your expense on procuring such coverage. It will be beneficial in understanding the amount you will have to pay to procure a term insurance policy. It is crucial you do not have any financial crisis while paying the premium.

Once you input your current income, age, life cover requirements and work details, our online term plan calculator will give you a quote. If you are planning to secure your loved ones’ future with an affordable term insurance plan, it is only a click away.


Calculate premium for your Term Plan

  • Y N
    • Annual Income
    • Sum Assured
    • Select Cover Upto Age
    • Name
    • Mobile
    • Email ID
Your Annual Premium for Aegon Life iTerm Insurance Plan
Prev
How term insurance works?
Next
Term Insurance Claims Details

RELATED ARTICLES