Factor in inflation into your term plan

₹1 cr cover today won't amount to much decades later

- RHISHABH GARG

FOR ANYONE EARNING over ₹1 lakh a month, financial responsibilities often extend beyond monthly expenses. Long-term goals, lifestyle aspirations and a commitment to securing the family's future are all on the list.

At this income level, term insurance isn't just an option; it's a fundamental pillar of financial planning. The right cover ensures that your family remains financially secure in your absence, while also accounting for future milestones like your child's education or your spouse's financial needs.

Thumb rule

The thumb rule suggests opting for a sum assured that's at least 10 times your annual income. However, those earning ₹12-13 lakh per annum should aim for a ₹2-2.5 crore cover in term insurance. For a 30-year-old, this is quite affordable with a monthly premium of about ₹1,500-2,000.