The mantra of insurance

How much shud u get insured for??? Not sure..well here is the thumb rule.. if ur salary is 4 lakhs per annum, u shud get insured 6 times this amt that is 24 lakhs.

Why so??

Here is the explaination:

@ 4 LPA ur monthly salary comes around 35000 per month.

Now say (God forbid), something happens 2 u, which leaves u and ur family without any source of income. At this time ur insurance comes to ur rescue...24 lakhs invested in a FD at 8.5 % ROI wud fetch u an interest of 2 lakhs per annum or 16,000 per month..good enuf for survial and maintaing a decent living of living.

If this amt seems less, u need to scale up the sum insured.

So which policy to choose..Term Policy, Money Back.....or any other.

More abt this, coming up in my next post

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