IGI Logo

Generally our families and loved ones depend on our income to fulfil their dreams and for better financial future. Many a time, we make the mistake of looking at life insurance in isolation which leads to a situation of underinsurance, i.e., the coverage amount not being enough to pay for the day-to-day needs and future dreams of those who rely on us for them. Therefore, in order to minimize the impact of unexpected financial vulnerabilities and fulfill saving goals, life insurance becomes an essential tool for your dependents. Hence, regardless of your income, your life insurance cover should be more than sufficient to settle your existing financial obligations, your family’s future requirements. Irrespective of your income and age, keep the following factors in mind while choosing the face value of your insurance policy:

1. Income replacement:
   It is one of the key purposes of life insurance, especially if you are the sole provider for your family. You will need a policy with a payout which would replace your income and also provide a guard against inflation and rising healthcare costs. You need to estimate how many years your family would continue to depend on your earnings. This considered as a solid safeguard against price rises and medical inflation while ensuring income continuity for your loved ones.
2. Outstanding debt:
   Generally, in your absence, your family or estate becomes liable for any debt you owe. All of your loans, which may include motor vehicle loans, home mortgage, credit cards and personal loans, must be settled in full. Therefore, it is necessary to include your obligations in your policy so that your beneficiaries can continue paying off loans. This step becomes even more important if your loans are secured by collateral that your family needs to continue using, like your home or the family car.
3. Saving goals:
   You may desire to send your kid to the best university abroad, buy a home for your family or secure retirement for your spouse. Sudden loss of your income might jeopardize the continuity of investments and savings towards such goals, depriving your family of things they deserve. As a result, you must prioritize your family’s investment goals and provide protection for them by including the target amount in the policy coverage.
   
   With a plethora of life insurance products to choose from, you need a policy that can help you cover all the bases while providing maturity benefits. Keeping the aforesaid factors in mind, a ‘income protection plan’ or ‘monthly income plan’ might be your best bet to make sure that your family is taken care of when in need. These type of life insurance plans provide a monthly income option for a period of 10-15 years for you and your family, apart from guaranteed payouts and bonus additions at maturity. In any case, you should do your due diligence and go for the insurer which provides you with the best terms and has an excellent record of claim settlements.
   
   Determine your optimal life insurance requirement by taking into consideration your financial position, goals, risks while choosing the life insurance policy. So, find out the right life insurance amount which is enough to achieve your savings goal at maturity or provide sufficient protection to your dependents in your absence.

To know more about Term Insurance browse the website for various Term Plans offered by PNB MetLife

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
IRDAI Registration Number 117. CI No: U66010KA2001PLC028883.
For more details on risk factors, terms and conditions, please read the respective sales brochure carefully before concluding any sale. Terms and Conditions Apply. Goods and service Tax (GST) shall be levied as per the prevailing tax laws which are subject to change from time.
The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
EC044    LD/2019-20/049

BEWARE OF SPURIOUS/FRAUD PHONE CALLS!
• IRDAI is not involved in activities like selling policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.