Here is the information that can smoothen the process of buying a term policy
27-Nov-2013 •Research Desk
I am 45 and have a 9-year old son. I earn Rs 20,000 each month and don't have any insurance. How should I go about buying a policy? Please suggest a term plan.
Insurance offers financial stability to your loved ones in your absence. It is good that you have realized the importance of being insured. Firstly, you should decide the amount of your insurance cover. This would depend on your current standard of living fund your family's liabilities and goals.
There is no thumb rule to calculate this amount. List your liabilities such as outstanding loans, daily household expenses, child's education fund etc. Next, evaluate your assets and income from other sources (like rent received). Deduct your assets from liabilities and goals. The amount derived is the amount of insurance you require. You should also consider the effect of inflation on your cover.
Aviva i-Life, SBI Life eShield, HDFC Life Click2Protect are some of the good online life insurance policies. Aviva Lifeshield Platinum Protection, SBI Life Smart Shield- Level Term are good offline policies if you are not comfortable with online purchases. Online policies are relatively cheaper due to absence of intermediaries and agents.
Buy protection for a term until someone else replaces you as breadwinner of the family. Once you decide your sum assured, check the policy premiums and select one which fits your budget.