How much life & health insurance do you need?
Life Insurance Life insurance is a type of insurance that provides financial aid to nominee/beneficiaries in case of death or critical illness of policyholder. Life insurance does not provide financial aid for the loss of life. Life cannot be measured in terms of money. Companies provide insurance based on the earning capacity of the policyholder. How much Life Insurance do you need? We will discuss two methods: Thumb rule Need based Analysis Determining life insurance based on thumb rule Life insurance should be 10 times your yearly income and child’s education expenses. For example: If your monthly income is Rs.