Life insurance cover is a financial help for your family when you die, where insurer provides a lump-sum payment (death benefit), to your family after insured's death.
Input | Description |
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Annual income | It is an annual amount earned by you or other family members |
Annual expense | It is an annual amount to fulfill your and your family's financial needs |
Planned expense | It is an amount for your future financial goals like child's marriage, child's education or any other |
Investment | It is an amount as your total investment till date |
Outstanding loan | It is a total outstanding loan amount which is still unpaid |
Life Insurance is to help your family financially in case you are not able to earn due to some issues like an accident or illness. So that they can not suffer from financial problems.
The insurance cover amount is mainly decided on the premium you can pay during the pre-decided duration of policy. All though the most insurance companies say it has to be 6-10 times of the amount of your annual salary.