Top 5 factors that determine your Term Insurance Cover Amount | CA Rachana Ranade
Published: 2024-09-20
Status:
Available
|
Analyzed
Published: 2024-09-20
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
For a 35-year-old with a 10-year-old son, a spouse, monthly expenses of 60,000, no outstanding loans, and a desired cover until age 60, the recommended term insurance cover is 1.9 crores.
"the recommended cover for chandu is 1.9 crores"
Pending
For a person with two dependents (5-year-old son, 2-year-old daughter), a spouse, and monthly expenses of 80,000, the recommended term insurance cover is 2.6 crores, assuming other factors are constant with the previous example.
"his required cover comes out to 2.6 crores"
Pending
If there is a car loan of 20 lakhs, this amount should be added to the term insurance cover calculation to ensure the loan can be paid off without impacting the family's financial stability.
"just add up this 20 lakhs here [...] and then if we hit calculate you can see that the the cover is just increased exactly by the same amount of 20 lakhs"
Pending
When using a term insurance calculator, inflation is typically factored into the calculations, so users do not need to manually adjust for it year after year.
"you need not calculate or recalculate the cover based on inflation because that is already factored in"
Pending
When calculating the required term insurance cover, any existing coverage should be deducted from the total calculated amount to determine the additional coverage needed.
"whatever cover amount you calculate say five crores assume that you already have a cover of three CR rupees then now only balance two crores fresh cover will be required"
Pending
Recommended term insurance cover for 'Chandu' is 1.9 crore INR.
"the recommended cover for chandu is 1.9 crores"
Pending
Recommended term insurance cover for 'Buu' is 2.6 crore INR.
"his required cover comes out to 2.6 crores"
Pending
Term insurance policy tenure should ideally extend up to the age of 60.
"policy tenure should be ideally up to the age of 60"
Pending
Car loans should be considered when calculating the required term insurance cover.
"just add up this 20 lakhs here I know that here it mentions that only unsecured loans but I think we could also take something like a car loan here in consideration"
Pending
The term insurance cover calculation already factors in inflation.
"all in all what does this tell you that you need not calculate or recalculate the cover based on inflation because that is already factored in"
Pending
A future video will discuss investment strategies for life insurance claim payouts.
"if you want to know my thought process please let me know in the comment section I would love to do a separate video on what could be done with the amount received on account of life insurance claim"
Pending
The recommended term insurance cover for an individual named Chandu, based on his age, dependents, and monthly expenses, is 1.9 crore INR.
"the recommended cover for chandu is 1.9 crores"
Pending
The required term insurance cover for an individual named Bundu, considering his higher monthly expenses due to more dependents, is calculated to be 2.6 crore INR.
"his required cover comes out to 2.6 crores"
Pending
The optimal policy tenure for term insurance should ideally extend up to the age of 60, as dependents are generally expected to be financially independent by that age.
"policy tenure should be ideally up to the age of 60"
Pending
When a loan amount (e.g., a 20 lakh car loan) is factored into the term insurance cover calculation, the recommended cover increases by the exact amount of the loan.
"the cover is just increased exactly by the same amount of 20 lakhs"
Pending
Calculations for insurance cover consider inflation by inflating expenses at a rate of 5% annually, meaning recalculation is not necessary every year.
"yes we have inflated the expenses based at 5% inflation rate"
Pending
The speaker intends to create a separate video detailing various options for managing a life insurance claim payout (e.g., in fixed deposits, mutual funds, or stocks) if viewers express interest in the comments.
"if you want to know my thought process please let me know in the comment section I would love to do a separate video on what could be done with the amount received on account of life insurance claim"
Pending