People say to calculate Insurance based on your goals and needs. Let me assume my family will need 50lakh in my absence to cover the expenses and meet other goals.
Now if i die after 5 years.Insurance company gives 50lakh to my family ,this amount is taxable right? if yes the tax above 10 lakh is 30%,which will take away 12lakh from my insurance money from my family. Or is it tax free? or should i include tax as a factor along with inflation when considering insurance amount?