I am 38 years old and am planning to take a life insurance policy. However, the premiums seem to be quite high. What should be the ideal premium for someone my age? I have two dependants and my annual salary is ₹26 lakh. Kindly also suggest a few policies if possible.
—Arjun Verma
It seems you are looking at investment-oriented life insurance because the premiums for term insurance are low. In term insurance, your nominee will be paid the sum assured only if you die during the policy term. Your premium should be about ₹11,000, including GST, for a ₹1 crore-sum assured and 20-year term. Given your annual income, you should take a sum assured of about ₹2.5-3 crore. It is good to take cover until the age of 60 or 65. This is often the typical retirement age for an individual. Premium for life insurance is dependent on entry age, smoking habits and term of the plan. To lower the premium, you can reduce the plan’s term. Refer to Mint’s “Term plan premiums” to shortlist plans.
