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When it comes to availing a life insurance consumers are not well informed of the tenure they need to select. Many complain that insurance providers do not cover until 75 years of age and that 25 or 30 years is a small period to avail cover for, in case a person avails the policy early in life. Consumers seem to need a cover that insures them until 70-80 years of age or sometimes whole life. This is a tricky problem to solve and requires some insight. Let’s see how you can calculate the age until which you need a life insurance cover. A life insurance is mostly taken to cover the risk of the early death of the bread winner of the family. It offers financial stability to the dependents of the insured in case of his unexpected demise. With this we deduce that such an insurance policy should only be taken till the time of retirement of the earning member. As mostly close to the retirement years of the bread winner, no one is financially dependent on him/her. Normally a person retires by he/she is 65 years or so and until you are 70 your children would have settled in their lives managing by themselves. Do you still think you’ll need a insurance cover to make for any eventualities? This means that if a person at the age of 30 plans to get a life insurance to cover him until he retires (say around 60 years) so he would need a plan with 30 years of tenure. Life insurance is basically a replacement you avail for your future earnings. This means that sum assured should be equivalent to the amount that can substitute the income you would make in a life time (earning years). Keep in mind that – -You need a life insurance policy only till your retirement years ·You can discontinue the policy the day you save enough for your dependents ·There is no point in continuing an insurance after you retire, unless you want to leave behind a huge amount as inheritance ·As most of the people retire by maximum 65 years of age, companies normally offer insurance until then ·Along with a life insurance, also work on an investment plan to build a suitable corpus ·Insurance should be used as protection and not investment ·You need High Insurance cover at the start of the career when you have no Investments. I am Anjana Shirskar, an experienced author with keen interest on Insurance Policy. I have a number of articles to my credit based on topics related to life insurance.
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