🛡Ensuring financial security for your family is crucial, even in your absence!!
One way to achieve this is through Term Insurance!!
But how do you determine How Much Cover You Need?? 🤔
(📎 Link to Ideal Term Cover Calculator)
One way to achieve this is through Term Insurance!!
But how do you determine How Much Cover You Need?? 🤔
(📎 Link to Ideal Term Cover Calculator)
🔸The drawback of using Rule of Thumb 🚫
When people think of Term Insurance Cover, they think of the popular Rule of Thumb -
Term Insurance Cover = 10 × Annual Income
However, this method falls short of capturing your changing lifestyle and future expenses.
When people think of Term Insurance Cover, they think of the popular Rule of Thumb -
Term Insurance Cover = 10 × Annual Income
However, this method falls short of capturing your changing lifestyle and future expenses.
🔸Let's explore a better way to determine the Ideal Cover
🔹 STEP 1: Assess Your Financial Obligations 🎯
Consider your lifestyle expenses and prior commitments like EMIs.
Calculate your monthly expenses, including loans and education costs.
This is the min cover you require!
🔹 STEP 1: Assess Your Financial Obligations 🎯
Consider your lifestyle expenses and prior commitments like EMIs.
Calculate your monthly expenses, including loans and education costs.
This is the min cover you require!
🔹STEP 2: Account for Inflation and Additional Expenses📈💸
Remember, the cost of living increases over time.
Ensure your cover amount accounts for inflation.
Also, consider household expenses, health insurance premiums, and other day-to-day costs.
Remember, the cost of living increases over time.
Ensure your cover amount accounts for inflation.
Also, consider household expenses, health insurance premiums, and other day-to-day costs.
🔹 STEP 3: Don't Overlook Liabilities🏠
If you have significant loans, such as a housing loan, ensure you have adequate insurance to cover those liabilities.
Protect your family from the burden of debt in case of your unfortunate demise.
If you have significant loans, such as a housing loan, ensure you have adequate insurance to cover those liabilities.
Protect your family from the burden of debt in case of your unfortunate demise.
🔹 STEP 4: Evaluate Your Income and Liabilities Ratio 💰💪
Your income-to-liabilities ratio plays a role in determining the ideal cover amount.
If you have high income and low liabilities, you may not need a substantial cover.
Your income-to-liabilities ratio plays a role in determining the ideal cover amount.
If you have high income and low liabilities, you may not need a substantial cover.
Conversely, if you have high liabilities and low income, consider a higher cover.
STEP 5: Consider Existing Life Insurance🛡✅
If you already have life insurance coverage, deduct that amount from your overall cover calculation.
Don't duplicate coverage unnecessarily. Adjust your term insurance accordingly.
If you already have life insurance coverage, deduct that amount from your overall cover calculation.
Don't duplicate coverage unnecessarily. Adjust your term insurance accordingly.
🔹Example
Let's say you have monthly expenses of ₹ 40,000, liabilities ( housing loan, education loan, etc.) of ₹10,00,000.
Additionally, you have other household expenses totaling ₹10,000 per month.
Let's say you have monthly expenses of ₹ 40,000, liabilities ( housing loan, education loan, etc.) of ₹10,00,000.
Additionally, you have other household expenses totaling ₹10,000 per month.
Considering a 30-year term and inflation (5%), your Total Cover Amount should be ₹22,00,0000.
Wondering how I arrived at this Figure?? 🤔
The answer is simple - I used a Term Cover Calculator. And, you can use it too!! 📟
Wondering how I arrived at this Figure?? 🤔
The answer is simple - I used a Term Cover Calculator. And, you can use it too!! 📟
🔹Use the Ditto Insurance Calculator to find your Ideal Cover 📟
You simply have to fill details such as your age, cover duration, monthly expenses, and loans.
The calculator will suggest a personalized cover amount for you.
bit.ly
You simply have to fill details such as your age, cover duration, monthly expenses, and loans.
The calculator will suggest a personalized cover amount for you.
bit.ly
And hey, in case you still need help selecting the Right Term Plan,
You can speak to the insurance experts at Ditto who offer spam-free, personalized advice.
And the best part is, it's FREE💥
Click on the link below to schedule a FREE consultation call👇bit.ly
You can speak to the insurance experts at Ditto who offer spam-free, personalized advice.
And the best part is, it's FREE💥
Click on the link below to schedule a FREE consultation call👇bit.ly
That's a wrap!
If you found this thread useful, please Like 👍 and Retweet 🔃 to share it with a friend!!
#partnership
@ditto
If you found this thread useful, please Like 👍 and Retweet 🔃 to share it with a friend!!
#partnership
@ditto
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