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How much cover do I need? (There are three rules of thumb you should…
- How much cover do I need?
There are three rules of thumb you should consider when choosing total value or lumpsum amount of your life cover.
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The first rule is to purchase a life cover that pays out at least fifteen times of your annual income. So if your income is 10 lakhs, your ideal life cover is 1.5 CR or more.
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Secondly, don't forget to add in the inflation rate of your currency. Not adding inflation rate might devalue your end-of-policy payout.
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Lastly, think of your legacy, as in how many dependent members are you leaving behind.
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Tell me something interesting
The term “inflation” originates from the Latin word inflare, which means "to blow up”.
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What is inflation?
Inflation rate denotes the rise in the price of goods in terms of percentage, per year. For example, if India's yearly inflation rate is 5%, then a ₹100 petrol would cost ₹105 next year.
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Tell me something interesting
Did you know that India has one of the most underserved insurance market with only 3.69% penetration as of 2017?
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