I am 33 and earn Rs 11,000 per month from a government job that does not give any pension after retirement. I have five life insurance policies worth Rs 5 lakh with annual premiums adding to Rs 30,000. Do I need any more policies?
Harish Rawat, Dehradun
Insurance requirement varies from individual to individual. You should work out a detailed life insurance need based on your current income, lifestyle expenses, financial dependents and liabilities. Moreover, if you do need additional life cover, consider taking a term insurance plan. This type of policy is designed with only death benefits and no investments. Simply put, should anything happen to you, your nominee would receive the sum assured. And, if you outlive the term, you get nothing, a reason for which these policies are less expensive on the premiums.