Life Insurance India

What is the need of life insurance.Its a an instrument which helps to give cash or financial support to your dependents in case of your death.
Life insurance has it many branches.Its an instrument which can help you in following ways.

1.Helping your dependents with Financial help in case of a death of a member.
2.Saving Tax as investment upto 1 lakhs in life Insurance saves 33,800 tax .
3.You can use this instrument for your retirement planning by investing in retirement plans.
4.Life insurance can also help in planning your children future through Children Plan.
5.Life Insurance can also be used to invest in stock market through Ulip Plan.


The individual has to understand what he needs in his life insurance.
According to us, every earning member of a family should have basic life insurance cover.This is because if his income helps running his family, in case of his untimely death, his family can be in financial crisis.This kind of Insurance is known as pure term Plan insurance.
This Term Plan is also not very expensive and a basic cover of 20 lakhs for the age group of 25-35 can be had from 8000-12000 rs annual premium.
This means that if you buy term plan and pay 8000-12000 each year and in case you die your family will get 20 lakhs but in case you don't die you don't get anything back.
So its a pure risk cover for death.
Who should have Term Life Insurance
According to us this type of Insurance is must for people who are only earning members and have dependents.
Who shouldn't have Term Life Insurance
In case your income is only consumed by you, you can skip this Life Insurance term plan.
Also if you have huge cash savings for your family you can do away with this, as that cash can be used by your family in case of unfortunate death.


Now is the question how much Term Insurance you need.
To get the right amount.
Check how much is your contribution towards your family monthly expenses.
How much time your family will need this amount till someone else will start earning in the family.
The Inflation rate that you expect in coming years

Just multiply the monthly amount with the number of months that your family will need and that is the amount of your total life insurance Term plan requirement.

For Eg You give 20000 per month to your family for home expenses and you have a younger brother who will get job in three years.You need Term Life Insurance of
20000*12*3=720000 .

So go check at www.bimadeals.com and get quote for your basic life insurance cover and give your family the cover they need.