“How Much Life Insurance Does One Need?” This is a common question discussed amongst Indian Diaspora.
If you’re searching for the best life insurance, you would want to reflect on the benefits of using term insurance calculator. It will help you to determine the right sum of insurance amount you need to convene your needs.
Below are the important questions one should ask himself to be able to decide on the right type of life insurance-
- Which life insurance type do I need?
- What is the amount affordable to pay for the insurance?
- How much protection do I need?
The Rule-Of-Thumb May Not Always Work
The old school Rule-of-Thumb which insurance agents use is, “One should aim for a sum assured amount of 7-10 times of his annual income.”
It’s based on a notion. Consider that your beneficiary invests or puts the death benefit received from life insurance policy in a good option. He gets a reasonable return on his investment. This person therefore will get a source of income and enhance his livelihood.
However, having 10 times of sum assured amount is not enough. The beneficiary should get 10% return on his investment to be able to receive the same amount of income as before.
Hence, there must be some better way. Term insurance calculator is the one which helps you accurately determine the correct amount of life insurance.
Benefits of using term insurance calculator
Term insurance calculator answers you needs based on accurate personal financial situation. It calculates the right amount needed to meet the essential needs.
You just need to go through 5-15 easy questions. Once done, instantly an accurate figure pops up. It shows how much insurance is needed to protect all your loved ones. The best part is that it requires only 2 minutes replying to the questions followed by an instant solution.
In short, the benefits of term insurance calculator are as follows-
- o Easy process- Requires answering a few questions.
- o Quick and instant- You get immediate reply.
- o Customized – It gives solution matching your personal needs.
- o Accurate - It reflects your financial situation.
In short, using term insurance calculator is the smartest way to determine one’s life insurance needs. It displays the right amount of life insurance you should select to protect your family. It does so by accurately tallying your financial situation and considering your priorities which it grasps through the questions you answer.
Hence, you’re able to buy life insurance which would be enough to protect your family when you pass away. Also term insurance calculator ensures that you don’t overdo from your family’s needs. Hence, it helps you put your each penny in the right basket.
It makes total sense to use term insurance calculator to determine the right insurance policy for you. Perhaps, it will take only few minutes but giving you life-long benefits. So choose and start using term insurance calculator for deciding on the right type of policy for you.