Should I take Life Insurance?
If you have dependents (especially if you are the primary provider) or significant debts that outweigh your assets, then you need insurance to ensure that your dependents are looked after if something happens to you.
However, one must note that buying life insurance doesn’t make sense for everyone. If you have no dependents and have enough assets to cover your debts, survivor living expenses and the cost of dying (funeral, estate lawyer’s fees, etc.), then insurance is an unnecessary expense for you.
Which Life Insurance Plan I should opt?
If you need pure protection then Term Plan is best for you.
There is no return under Term Plan then why should I take Term Plan?
Remember that nothing is free of cost. Even if you take ULIP plans, money back plans, endowment plans or whole life plans they will attract mortality charges which you have to pay. If you take term plan then in very small amount you can take higher sum assured.
How much sum assured should I take?
There are two methods of deciding the sum assured which is human life value and need based analysis. One should use need based analysis method for deciding sum assured. In need based analysis method, you ought to add survivors living expenses, future value of outstanding life goals, outstanding debt, cost of dying (funeral, estate lawyer’s fees, etc.) and deduct your saleable investments, and insurance already available. The difference is the sum assured required.