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)
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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)
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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)
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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)
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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)
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23 May 2023 Thank you very much Sir,

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 May 2023 You are welcome.

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