Why Insurance?

Why Insurance?

Can you think a life without insurance?
If you can, then you are ignoring that your family is at risk. If something happens to you, your family will be in financial trap.... 
Can you see your family without money?
If no, then insure yourself. 

How Much Insurance? 
It is very important to know, how much Insurance cover we must have?
Here, I give you a simple exercise which will help you getting at the right answer.

We all have certain expenses, let's calculate how much we spend per month....

Expenses

Food                                             _____________

Bills

Electricity                                    _____________

Gas                                               _____________

Mobile                                          _____________

Water                                           _____________

School/Tuition                            _____________

Internet                                       _____________

Others                                          _____________

Loans

Home                                            _____________

Car                                                _____________

Personal                                       _____________

TV/Fridge etc.                            _____________

Others                                          _____________

Clothes                                         _____________

Household items                         _____________

Medical Bills                                _____________

Others if any                               _____________

Total                                           ___X________

Now, multiply the total by 100 and it will be your Sum Assured for Insurance.

e.g. If the total is Rs.30,000, 

then Rs.30,000 x 100 = Rs.30,00,000

means you should have Insurance worth Rs.30,00,000

** This value is not your "Human Life Value (HLV)". It is a simple solution to get the basic Insurance. Your HLV may be more than the value you get as an answer. 

You can insure yourself on basis of "Human Life Value (HLV)" also. It is a complicated process and you have to consider many factors to arrive at HLV. By calculating tangible and intangible assets you can get your HLV.

Now, some questions arise - 

Which company?

- Any.

Which type of Insurance?

- Affordable.

What should be the term?

- 60 - your age 

e.g. If your age is 35 then, 

60 - 35 = 25 years 

Keep it SIMPLE........ Have a Great Life

- Ajay Tulsidas Maktedar

   

SBI Life Insurance Co. Ltd.

9929131473, 8149888270

(Trainer - Insurance, Mutual Funds Advisers)