I’m a Working professional as an Engineer and aged 22. Just one year Completed till now, getting a salary of 15,000 p.m and i’m looking for an Term Insurance, which is primary thing i have to do for my family Future. Consider my Example which has doubt,
Term Insurance cover of 25 Lakh(assume) for period of 35 years, just consider that i died on 34th year of cover period, my family will get about 25lakh . The value of 1 rupee after 35 years it will be 10paisa (becz of inflation , as you stated in your article somewhere, conversion might be false , numbers are just assumptions). Then my 25lakh after 34 years will not value that much…..
SO my question comes here,
1) Due to value of money changes, whether i need to take Term insurance for first 10years and after that cover expires i’ll go for next 10 years?
2) or else i need to take 1.cr of Term Ins. for 35 years, i this case i’ll be in situation to pay around 26,000p.a(LIC Amulya Jeeven plan calculator). but i’ve to give back 80% salary for debt clearance to my father.
3) Regarding this situation How can i plan my Term INsurance?