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How to become Crorepati?
Systematic Investment Plan

Insurance is a key part of financial planning but thinking of it as an investment is an increasingly common mistake.

Insurance is not merely an investment to save taxes. It’s a lot more. Whether it’s about the financial security for your family or having that protection cover when life springs up unpleasant surprises.

There is nothing that can beat Insurance.

You should look for “Pure term insurance plans” without return of premium. This is one of the cheapest and simplest forms of life insurance coverage.


Are you adequately insured?

Understand how much life insurance you need, primarily based on analyzing the expense profile and the current wealth level of your dependants/family.

“Insurance works on the concept of Human life Value”

What is human life value?

Human life value means economic worth of an individual to his near and dear ones. If an individual earns 2 lacs per annum and spends 50,000 for personal reasons and tax. The remaining 1 lacs and 50,000 which, he gives to the family for running the house and that the family would be deprived of the same if the person died, is nothing but the Human life value of the person.

<How much insurance does an individual require?

Remember the thumb rule Taxes and personal expenses deducted from the Gross Annual Income, the remainder divided by Return on Investment (ROI) is the amount that one needs to insure him/her for.

Annual Expenses/Return on Investment (ROI)=Sum Assured

E.g. Annual exp # 3,60,000/- and ROI # 6% P.A then Sum Assured would be 60 lacs. (Assuming that Return on Investment (ROI) is 6% P.A)

OR

Factor (As per table)*Annual Expenses = Sum Assured

E.g. Annual exp # 3,60,000*16.67 then Sum Assured would be 60 lacs. (Assuming that Return on Investment (ROI) is 6% P.A)

S.No. Return on Investment (ROI) Factor (Annual Exp)
1 2% 50.00
2 3% 33.33
3 4% 25.00
4 5% 20.00
5 6% 16.67
6 7% 14.29
7 8% 12.50
8 9% 11.11
9 10% 10.00
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