Term Insurance & Health Insuanrce how much amount

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This discussion explores the appropriate amount of term life and health insurance for someone earning approximately £4 Lakhs annually. While tax benefits are minimal at this income level, the advice suggests term insurance should be 5-10 times annual income and health insurance premiums 5-10% of annual income. Factors like age and dependents also influence the final decision.

Nisha Kathuria

Nisha Kathuria (Querist)

22 May 2023 Dear Sir

Kindly advise a person have a monthly income Rs.32000/- include of FDR interest yearly income approximately Rs.4 Lacs so how much,s amount Term insurance & Health insurance he can take

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 May 2023 If you wish to save income tax by purchase of insurance schemes, better go for new tax regime, almost nil tax liability (off course, from FY 2023-24 onwards.)

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Nisha Kathuria

Nisha Kathuria (Querist)

23 May 2023 No Sir, No save to income tax annual income is Rs.400000/- No tax liability. so please suggest how much,s amount Term insurance & Health insurance he can take

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 May 2023 It varies upon many more factors like age of assessee, dependents, future plannings etc. Roughly speaking the term policy should be 5 to 10 times of annual income and Mediclaim premium should be between 5 to 10 percentage of annual income, based on the health conditions of his/her family members.

Nisha Kathuria

Nisha Kathuria (Querist)

23 May 2023 Thank you very much Sir,

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 May 2023 You are welcome.

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