The rule of thumb in financial planning says that life cover should be worth 6-7 times of your current annual income.
If your current annual income is 4 lakh then the insurance policy should provide a cover of Rs 24 lakh.
This calls for a pure-risk policy, which offers an extensive cover at minimal cost. Hybrid investment products, with moiney back option cost several times more for the same amount of risk cover.
A term plan is the best option when the purpose is life cover.
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