I am hunting for a good Term Insurance and have a few queries. I had read somewhere that there is a Limit on Sum Assured for Term insurance which is capped at 10 times the annual income as per IRDA. I am a salaried individual and do have a precise monthly income. I searched the net for these doubts but could not get a definitive answer, which I want to clarify before I call in agents or apply online for one.
Now in the above light, I wanted to know:
1. Is 10 times still the current rule or has it been revised by IRDA?
2. If I have other assets (like property etc.) will it be considered while applying the Cap and the cap be raised?
3. Say my annual income is 10 Lacs, is 1Cr a cap on single Term policy from one insurance company or is it a cap on total Sum Assured of all Term Insurances I can have?
4. Is the 10 times Annual Income for Gross Annual Income or Annual Take Home(after, TDS and other deductions) ?
Thanks.