There are several approaches to estimating the life insurance cover you need. One simple approach is to use a multiple of current income. The principle here is to take life insurance that is sufficient to pay off all outstanding debts and also contribute 7 years of the wage earner’s current income to the family. Let’s take a few examples to illustrate this. Consider a family with annual income of Rs 5 lakhs, which has a home loan of 25 lakhs and other debts of 5 lakhs. The minimum cover required works out to 65 lakhs i.e. Rs 30 lakhs to take care of the debts and Rs 35 lakhs to cover 10 years of income. If we consider a more affluent household with annual income of Rs 10 lakhs, which has a home loan of 50 lakhs and other debts of 10 lakhs, the minimum cover required works out to 1.3 crore i.e. Rs 60 lakhs to take care of the debt and Rs 70 lakh to cover for 10 years of annual income. There are some other approaches to estimating the life insurance cover. These include the ‘multiple of expenses’ approach, the bottom-up estimate of future expenses. All these approaches work on the same fundamental principle which is that after the death of the wage earner the family should have the finances to live life without compromising on the quality of life, education of children, or responsibilities such as marriages and family holidays.

1. The key factors that determine
your life insurance cover
You should cover for at least 7 years of Income.
If it is not a current financial constraint, we would
recommend covering for 10 years.
You should cover for all your existing and
expected debts.
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2. Our Recommended Cover
Your Current Minimum Cover Minimum Cover Minimum Cover
Income (per (if you are debt (if you have a (if you have
annum) free) home loan) other loans too)
Up to 5 Lakhs 30 Lakhs 55 Lakhs 60 Lakhs
5-10 Lakhs 50 Lakhs 80 Lakhs 90 Lakhs
10-15 Lakhs 80 Lakhs 1.2 Crore 1.5 Crore
15–20 Lakhs 1.2 Crore 1.6 Crore 2 Crore
20-25 Lakhs 1.6 Crore 2.25 Crore 2.75 Crore
25-30 Lakhs 2 Crore 2.8 Crore 3.5 Crore
Above 30 Lakhs Above 2.5 Crore Above 3.5 Crore Above 4 Crore
Depending on your age, the annual premium will be only about half a
percent of the cover
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3. Fill in your details on our
inquiry form.
We will call you right back!
SecureNow Insurance Broker Private Limited
3rd Floor, 29 Hauz Khas Village, New Delhi 110016
Web – www.securenow.in
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