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Saturday, April 7, 2012

Life insurance for sale – Only for those who love their family

According to a study, there are more than a million ways in which a person could die. Yet most people feel they will die only after a long time. Let’s see understand the above picture with respect to an average Indian family. Image 1 – Progressing ahead The family consists of a husband, wife and two kids. Husband is the only earning member in the family. He is earning well and takes good care of the family. All the monthly expenses are well taken care off from his salary. Now they are planning to purchase a car. Image 2 – Going backwards Husband dies unexpectedly due to an accident. Wife and children are left without any support. Apart from the mental stress they don’t have money to continue life as before or even take care of basic necessities. Image 3‐ In deep financial trouble The situation becomes worse when the family is forced to sell the house and belongings to fulfill their basic necessities. Lessons to learn from the above story You don’t need life insurance if you feel you have enough savings in your bank account which will last for a lifetime for your family. To calculate the amount multiply your monthly expense amount with 12(for 12 months) and multiply the result with 50(Assuming your family will live for minimum 50 years). For eg if your monthly expense is Rs 10,000 you will need Rs 90,00,000 in your bank account now. Yes you read it right Now. Also keep in mind we have not included inflation in the calculation. If we include inflation the amount required would become much higher or even double. If you don’t have this much in your account, you can still take ensure the best for your family with adequate life insurance. You can calculate the amount of life insurance cover required by multiplying your annual income by 12‐ 16 times. For example if your annual income is Rs.5,00,000/‐ you need to take a life insurance with risk cover of approximate 60‐80 lakh rupees minimum. For further assistance contact: 9886823242-Shraddha Consultancy, "where values are redefined"

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