Whole Life Insurance, India

By: EconomyWatch   Date: 26 May 2010

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India whole life insurance is a policy that ensures financial protection for the surviving members of a family in the event of the death of the insured individual. With the help of whole life insurance India, you can ensure that your family members do not have to carry any burden other than the emotional one or make substantial adjustments to their life style when you are no longer there to look after their needs.

While buying an Indian whole life insurance policy, it is important to consider how much cover would be sufficient. The only criterion people usually keep in mind is that the cover amount should seem affordable. Moreover, for most Indians, insurance is a tax planning tool and not something that would provide financial stability to their family members. However, whole life insurance India should be taken more as a means of family protection than an investment tool and should be bought carefully so that your family’s financial needs continue to be fulfilled after your death.

How Much Life Insurance Do You Need?

Sorting out how much India whole life insurance you need is a little like predicting inflation and its impact on the family’s future expenses. You would also need to figure out the amount that would be sufficient and the time your family would need to start supporting itself through other financial income. Predicting both these factors is difficult. However, you may find some direction by answering the following questions:

  • How much money (after taxes) do you take home?
  • How much money does your family get from sources other than you (your spouse’s income, investments etc.)? And, how much income would continue without your support?
  • If you are a single parent, how much financial assistance would a guardian need to take care of your children?
  • How much money do you have in savings? Would the money be immediately accessible to the family or will it be accessible only after a period of time?
  • What would the surviving spouse need if s/he is not able to work?
  • Do you have any outstanding mortgage and would you need life insurance benefits to pay off your debts?
  • Do you want the life insurance proceeds to pay for the college costs of the surviving children?

    • Alternatively, one can simply replace ten to twelve years of his/her annual income with an India whole life insurance policy. If you already own a whole life insurance India policy, ascertain whether it will meet your family’s needs in the light of the above points.


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