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.
New budget to impact sales of insurance companies
Due to increase in tax bracket, the number of tax-payers may decrease. increase. May lead to a decrease in number of free policies issued.Apnainsurance.com Research Bureau
02 Mar 2008
The Finance Minister in his budget raised the taxable income bar from Rs. 1.1 lakh to Rs. 1.5 lakhs. For women, it was raised to Rs. 1.8 lakh while for senior citizens; it was raised to Rs. 2.25 lakhs.
Prior to the rise in tax bracket, a larger population was a potential consumer-base. Investment in insurance is one of the most popular tax-saving instruments in India. Given the increase in tax bracket, a significant increase is expected in the number of people who do not have to pay taxes.
This will have a negative impact on the insurance industry where the number of fresh policies issued will dip down significantly.
The budget provides for an additional deduction of Rs 15,000 for medical insurance premium paid for a parent. The deduction increases to Rs 20,000 if the parent is a senior citizen. The budget has done away with the earlier mandatory condition that the parent has to be a dependent on the assessee.