Life Insurance

Life Insurance
An essential part of financial planning is creating provisions for your family and loved ones following your death. Life insurance can ensure financial security to those who mean the most to you, such as your spouse, children and dependent parents. A carefully executed life insurance policy can help prepare for life’s uncertainties and give peace of mind knowing that the future of those who rely on you is secure.
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What is Human Life Value?
Human life value is an estimate of the financial value of a human life. In insurance, this value is used to determine the amount of insurance that a person should buy. Simply expressed the sum insured must equal the human life value.
The most common way to assess human life value is to estimate your income each year until you expect to retire, typically 65 years. The estimation process can be considerably simplified if you assume that your income will increase in line with inflation. Then human life value will be your current income ( Rs. 10 Lakh per annum )  multiplied by the number of years until you turn 65. So, for a 40-year-old the human life value will be 25 times  ( 2.5 Crores ) the current income. Based on above info, The Life Insurance of 40 years Old should be of Rs. 2.5 Crores.