When I ask people how much life insurance they have, many times I hear that they pay 40k per year and at the end of 20years they will receive 16,00,000 – This is not Insurance coverage. This is also NOT the amount your nominee will receive if you DIE.
Insurance coverage is Sum Assured on the policy taken. Please refer to Sum Assured/S. A on the policy document to find how much insurance coverage you have. This is the amount your nominee will receive if you DIE
Please refer snapshot to find out sum assured of your life insurance policy
Now, Add all your Insurance policies Sum Assured, Let’s say it as X
The X amount your nominee will receive from the insurance company in an event of your unfortunate death, Is it sufficient to pay off following?
- Clear all Liabilities – Housing Loan, Car Loan, Personal Loan, Credit Card Loan, UnOfficial Loans, etc.
- Should be able to pay children schooling, College fee, and Marriage expenses
- Monthly Household expenses for the family till the end of the life of spouse (70 or 85 or 90 years?)
So the question is does the X amount received takes care of above points, If not, then you are UNDERINSURED
Get Insured Adequately, I’m here to help, If you don’t know how?