cash or financial support to your dependents in case of your death.

Life insurance has it many branches. It’s an instrument which can help you in
following ways.

1.Helping your dependents with Financial help in case of a death of a
member.

2.Saving Tax as investment upto 1 lakhs in life Insurance saves 33,800 tax .
3.You can use this instrument for your retirement planning by investing in
retirement plans.
4.Life insurance can also help in planning your children future through
children plans.
5.Life Insurance can also be used to invest in  stock market through Ulip
Plans.

The individual has to understand what he needs in his life insurance.
According to us, every earning member of a family should have basic life
insurance cover.This is because if his income helps running his family, in
case of his untimely death, his family can be in financial crisis.This kind
of Insurance is known as pure term Plan insurance.
This term insurance is also not very expensive and a basic cover of 20 lakhs
for the age group of 25-35 can be had from 8000-12000 rs annual premium.
This means that if you buy term plan and pay 8000-12000 each year and in
case you die your family will get 20 lakhs but in case you don't die you
don't get anything back.So its a pure risk cover for death.
Who should have Term Life Insurance.According to us this type of Insurance is must for people who are only earning members and have dependents.Who shouldn't have Term Life Insurance In case your income is only consumed by you, you can skip this Life
Insurance term plan.Also if you have huge cash savings for your family you can do away with
this, as that cash can be used by your family in case of unfortunate death.

Now is the question how much Term Insurance you need.
To get the right amount.Check how much is your contribution towards your family monthly expenses.How much time your family will need this amount till someone else will start
earning in the family.The Inflation rate that you expect in coming years

Just multiply the monthly amount with the number of months that your family
will need and that  is the amount of your total life insurance Term plan
requirement.

For Eg You give 20000 per month to your family for home expenses and you
have a younger brother who will get job in three years.You need Term Life
Insurance of20000*12*3=720000 .

Check how much is your contribution towards your family monthly expenses.

How much time your family will need this amount till someone else will start earning in the family.

The Inflation rate that you expect in coming years

Just multiply the monthly amount with the number of months that your family will need and that  is the amount of your total life insurance Term plan requirement.

For Eg You give 20000 per month to your family for home expenses and you have a younger brother who will get job in three years.You need Term Life Insurance of