Iam 52yrs. have purchased underconstruction flat at rs.200000.probable delivery time march 2016. i have no term insurance or home loan insurance. my salary rs 70000/ per month (govt) . i have LIC of rs 40000/ YEARLY. NOW TO PROTECT HOME LOAN WHICH INSURANCE IS BETTER FOR ME?
Sir, You have mentioned that cover should be at least 10-12 times annual salary.In this case how much % of salary will constitute insurance premium?If it is sizeble,will it not be difficult for a person to make saving and investments for other important goals?
Re: Amount of insurance cover
by lakshmanan rajan on Nov 23, 2015 09:01 AM
The best is to take a term policy only. This is usually quite cheap, especially for the younger age group; and as you grow older and have hedged yourselves with assets and savings, stop the insurance. Do not fall to false promises of Unit linked Ins promises. The Insurance fellows do not know how to manage your finances. Between 2000 and 2010, the Ins Companies have destroyed Rs One trillion of premium paid by customers. Ins as a savings and investment is disastrous. Only as a term insurance (small premium but no saving) it is useful and neceasasary
Re: Amount of insurance cover
by lakshmanan rajan on Nov 23, 2015 09:01 AM
The best is to take a term policy only. This is usually quite cheap, especially for the younger age group; and as you grow older and have hedged yourselves with assets and savings, stop the insurance. Do not fall to false promises of Unit linked Ins promises. The Insurance fellows do not know how to manage your finances. Between 2000 and 2010, the Ins Companies have destroyed Rs One trillion of premium paid by customers. Ins as a savings and investment is disastrous. Only as a term insurance (small premium but no saving) it is useful and neceasasary
