How much sum assured should I choose?-term-insurance-plan

A term plan is responsible to cover your family’s needs incase of your death. The cover amount should be high enough such that it replaces your income. For example if you earn Rs. 5lakhs/month, the amount should be enough to replace your income. For example, If you choose to go with a cover of Rs. 70 lakhs, your family will receive this amount on your death. This amount can be invested at 8% per annum to generate ~5 lakhs/month thus replacing your income. Over and above this you should cover your existing liabilities – like home loan, car loan etc. For example if you have a home loan of Rs. 30 lakhs, then the total cover you should go for a total cover of Rs. 1 cr. – 30 lakhs to cover your home loan and 70 lakh to replace your income and provide adequate support to your family.