LoanBoss Blog

Deciding about the amount of life insurance

21 May, 2009 By:Unknown in Life Insurance,

People go for various life insurance policies due to their many benefits. The amount of life insurance depends on many factors. Ideally the sum assured should provide for all the needs of your family like children's education and marriage while meeting the daily basic expenses when the insured person is no more. It may not be an easy decision to make. First of all, your income level has to permit you to opt for the policy that you want to take. Your need may be more than the disposable income you can spare for paying premiums. Even if you want a higher sum assured the insurer need not oblige you citing your income.

There are many factors that influence the kind of insurance amount a person needs. One way of doing it is to calculate the level of income a family needs to maintain its standard of living when the breadwinner is not around. For example if a family's present need is Rs 20,000 p.m., then the extent of life insurance for its earning members should be such that interest income from the sum assured can meet the family's monthly expenses of Rs 20,000.

Age is also a big factor in deciding for insurance amount. Young people with no dependents may not have much need for life insurance. As one's family responsibility grows, there is need for life insurance. When one is single he may not bother much about life insurance. However, at middle age a person having children will feel the need to have a bigger amount of life insurance as the need to give good education to children and marriage expenses will dog him. Thus, a periodic review based on your family circumstances is required in order to ensure that the coverage is adequate. A person employed in some hazardous profession will need more life insurance cover than an ordinary individual.

In fact, the amount of insurance one should buy is dependent on his/her economic value, which is also called human life value. It can vary depending on individuals.

Comment:(8)
on 27 Oct, 2016

Hi there just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Firefox. I’m not sure if this is a formatting issue or something to do with web browser cotmltibiaipy but I figured I’d post to let you know. The design and style look great though! Hope you get the issue fixed soon. Thanks

on 03 Jul, 2016

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on 29 Mar, 2016

What is the todays price of my policy

on 18 Dec, 2015

You have to have your insurance and dotcor change your address in their records. I got my own insurance and live on my own. The insurance has my new address but the dotcor didnt. So I had to make sure both were changed.

on 31 Aug, 2015

My plan reliance Secure Child-Regular
Mr Kunal Dohare client I/D (Parent)-07894067
Child I/D 07893882
DOB Child 24.04.2005
DOC Policy 20.01.2009
Premeam Per Year 15000/- Pls deteled abaut at this time

on 04 Apr, 2014

Hi Ram, you may check the information online through LIC website...

on 03 Apr, 2014

My policy no 0131235857,0131083474 check details and current status and policy amount

on 06 Apr, 2013

what is the fund value till date.

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