1. Life insurance is a necessity and one can find the correct requirement of life insurance by following either method which involves finding bread winner economic value where income replacement method is used which assesses human life value and same is present value of all future incomes.
2. Second method involves Need-Based Approach calculation where all the dreams costs is added to present liabilities and it aids in finding the insurance requirement.
3. However above calculations are complicated and as a thumb rule one can take 50 times of present pay package without any deductions and can go for the insurance.
4. last but not least is that one should go for Term insurance plan which is cheap and it ensures minimum brokerage for life insurance agent and thus he/she will entice you to buy a ULIP or an endowment plan.Subscribe Here to Get Free Millionaire Potential Tips in Your Email.
