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how much sum assured for self income annual 03 lakhs asked Sep 18 '11 at 22:23 by Amit Bhati 1●1●1 what is paid up value in insurance?
(Sep 18 '11 at 22:25)
Amit Bhati
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)
(Sep 24 '11 at 15:36)
Pankaj Batra
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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. answered Sep 24 '11 at 15:29 by Pankaj Batra 5.2k●3●20 |