I am 28 and have a one-year-old child. My annual income is Rs 10 lakh. What should be the ideal sum assured in my policy?Basically, when you decide on a sum insured, you look at a lump sum which should be available to your financial dependents in the unfortunate event of your death. Therefore, there is no fixed rule for deciding the sum insured. The major factors influencing its determination are present and future income, expenditure, investible surplus and existing amount of savings. Go for a term plan and a pension plan. The term plan will help you secure an adequate amount of risk cover at a relatively lower premium outgo. In a pension plan, as your vesting age will be 30 years or so away, you will have to invest a lower amount for a decent pension than if you did later.
