Very few people enjoy thinking about the inevitability of death and at the same time most of the people see life insurance as an investment tool. In case of unforeseen death, we need to arrive at the "present value" of cash flow a family needs after death. This can be termed as human life value (HLV), which in simple terms is worth of financial support one offers to their parents, spouse and/or children when they are no more there to support their family with their regular income. Next critical question comes - How much future income is needed to sustain the household? Life insurance offers the much needed respite here and the cover comes at a cost known as the premium. Thus we must follow certain thumb rule in arriving that critical figure of life insurance sum assured required. Cover should be selected wisely or as suggested by your advisor.
ULIPs cannot be advertised as investment product: IRDAI
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