how much sum assured for self
income annual 03 lakhs
2 Answers
Sum assured should be on basis of multiple things like age, annual income, any liabilities (home/car loan etc), number of dependents, future expected expenses (child education, marriage etc), future expected increase in income and monthly expenses.
Considering only your annual income and child/wife dependency, you should take a pure term life insurance with minimum 50 lac sum assured.
Related
what is paid up value in insurance?
Paid up value is applicable only for traditional policies and not on term insurance. If policy premium payment is stopped after a particular time (3-5 years depending on policy), sum assured reduces to a value as per contract. Policy is not cancelled but remains existent with small sum assured.
New sum assured/Paid Up Value = Original sum assured * (Number of premiums paid / total actual policy term)