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Life Insurance Term plan for 29 years old married Individual

I am 29 years old. I am married and have one son. My monthly salary is Rs 25,000. I do not have Life Insurance Policy. Please suggest how much coverage I need and also please suggest a Term Life Policy

Mar 2, 2014 by Dhananjay, Kolkata  |   Life Insurance

Insurance offers financial security to your family, in the event of an untimely death. There is a process to go about selecting a life insurance policy.

(1) You should decide the amount of your insurance cover that you would require. While there is no exact formula for this, it depends on your standard of living, your liabilities and obligations and your financial goals. You need firstly list your liabilities (like outstanding loans, daily household expenses, child's education, wedding etc) and then estimate the cash flows related with these. Next, evaluate your assets and income from other sources (like rent etc.). You can derive the amount of insurance cover required, by deducting your assets and income from liabilities and goals. Please ensure that you adjust your required insurance cover for inflation. You should also consider the effect of inflation on your cover.

(2) Next you need to decide, whether you want to buy your insurance policy online or offline. Online policies are relatively cheaper due to absence of intermediaries. However, you must ensure that you select the best policy, irrespective of whether you buy online or offline. Certain policies are not available online. You may want to take the advice of your financial advisor.

(3) Select the policy after careful evaluation. Aviva Lifeshield Platinum Protection, SBI Life Smart Shield- Level Term are some good policies. Once you decide your sum assured check the policy premiums and select one which fits your budget.

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