A life insurance cover helps you secure the financial future of everyone dependent on your income in the event of your death. Nobody can help overcome the loss of a dear one, but imagine that along with this loss the surviving members of the family are hard-pressed to maintain their lifestyles because they were partially or fully dependent on the income of the deceased. Getting an adequate life cover is absolutely essential if the sum of the total value of your assets (other than the home you stay in) less your total liabilities (including any home loan, car loan or personal loan you might have outstanding) is less than 150 times your current monthly expenses. The shortfall would be the recommended amount of life cover you should seek. At ApnaPaisa, we help you reach out to a maximum of 5 service providers who will propose alternative plans that you can compare based on:
- Life Cover (also known as Sum Assured)
- Annual Premium
- Additional Riders Offered
Often customers get lured into combining their life cover requirements with an investment objective. We do not recommend this approach because it is always a lot more affordable to opt for a term insurance policy and invest the savings on the annual premium into any savings instrument of your choice - be it PPF, Fixed Deposits, Mutual Funds or even shares.
Life Insurance Industry to double in five years
A McKinsey report says that life insurance market will double to $100 billion by 2012.Apnainsurance.com Research Bureau
11 Sep 2008
According to a market study done by McKinsey, the life insurance market can easily touch $100 billion by 2012. This is easily possible if the life insurance companies bring in more innovative products.
The report titled, 'India Insurance 2012: Fortune Favours the Bold' shows that a higher per capita income will drive the demand for insurance products.
The report estimates that by 2012, Indian household will be paying premia of up to Rs 4,100 from the current Rs 1,300.
The ratio of life insurance premium to India's GDP is around 4 per cent as against 6-9 per cent in the developed countries. The ratio is expected to rise to 6.2 per cent by 2012.
The report also says that less than one third of the agents of all the life insurance companies in India meets the training and sales standards of their respective companies. Indians seem to prefer putting their money in insurance rather than putting it in to any other investment vehicle, for the purpose of investment as well as tax planning.
By 2012, about 40 per cent of the urban population may have some form of life insurance cover as against 30 per cent currently. In rural areas, it could touch 35 per cent as against 25 per cent.