Do you Really Need Life Insurance? How Much Life Insurance you Should Have?

Should you Go for Life Insurance? Do you Really Need it?

"No" You don't need life insurance when- 

1

A. You are not earning

B.  And You have no one DEPENDENT on you

"YES" you must take life insurance if -

2

A. You are earning

B.  You have family member DEPENDENT on you 

Now you must want to Know "How Much Sum Assured you need from your Life Insurance policy"?

Sum Assured = your annual income x 20

A

Means your life insurance should have sum assured value EQUIVALENT to 20x of your annual income 

How much sum Assured you must have.

Life insurance is not investment its security

B

do not consider the life insurance police as an investment, its for life security for your DEPENDENT or the kind of retirement benifit 

How much sum Assured you must have.

You must check the annual return forecast

C

Buy life insurance only after comparing the annual return projection with the help of XIRR formula, this will help you get the best plan.

How much sum Assured you must have.

XIRR Formula can be used in ms excel. 

D

The XIRR formula tells you what percentage per annum will your life insurance or SIP give you after the next 10 years or 20 years.