Must Have Covers

POSTED BY amitm79 ON January 10, 2012 7:03 pm COMMENTS (3)

What are the different insurance an individual should have, considering adequate risk management? What is the cover required in each case?
1> Life Insurance – 7 times gross annual salary + liabilities (Home loan, car loan)
2> Health Insurance – 10L or above (considering inflation)
3> Accident Insurance – Equal to gross annual salary

All the other jargons are baffling me. what all do I need e.g. critical illness, top up, OPD, hospital cash. The list is endless. How do I know which ones I need?

3 replies on this article “Must Have Covers”

  1. Dear Amit, Here is my take –

    1. Life cover – opt plain vanilla term cover for at least 12 times of your annual income + loans outstanding amount as on date. For example your annual income is 7L Rs. & home loan amount is 15L Rs., hence total life cover should be around 1 Crore Rs.

    2. Health Cover – In the light of the info from your other posts that you are already covered adequately for self & spouse & kid, no need to add more at this time. You may add it more later. Regarding your parents, please opt individual policies either from PSU insurers or Apollo. As your father is on wrong side of age to purchase a mediclaim, be ready to sheel out a huge prem. & no cover for next 3 years for existing decease.

    3. Accident Insurance – At least 3 times of your annula income so for the above example – 20L Rs. Reason, what ‘ll you do, if you are PTD (Permanent Total Disable) in an accident & not able to work any more but being alive, no claim is there from life insurance.



  2. says:

    My age is 32. My dependents consist of Father (64), Mother (58), Wife (31) and Son (3).

  3. Dear Amit, your age please?



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