LIFE AND MEDICAL INSURANCE

ONE may never get to regret taking a low life cover but your dependents will surely feel the impact of this mistake. An adequate life cover ensures that the family goals are not hampered due to the breadwinner's death. The insurance cover should be big enough to generate income that can take care of the expenses of the family till the policyholder's dependents are self-sufficient. One broad approximation is about 6-7 times the annual income of the individual. But this does not always re flect a person's insurance need. The cover must be big enough to settle loans as well.Apart from this, the insurance should also provide for crucial financial goals, such as a child's higher education and marriage.These are one-time expenses and their present cost should be taken into account while calculating the cover. Hemant Kumar (see picture) is the sole breadwinner and has a home loan of `25 lakh. He should not delay buying insurance because premiums shoot up after 40.