I am working with a MNC and my annual salary is Rs. 10 lakh P.A . I have following queries -
1) What is the Maximum Sum Assured one can choose under individual term plan?
2) How it directly co-relate with salary? How much multiply is the sum assured with Yearly salary or Monthly salary?
3) Is it vary with case to case basis?
We normally suggest that a person should have to have life insurance minimum 10 times of his annual annual income. This is the one way of calculating life insurance requirement. Other way is - Adding Liability to your income or calculating Human Life Value.Quote:
Originally Posted by SushantJindal
The risk has to be passed to the life insurance company's underwriter to accept or reject this, based on their risk taking capacity. Every company has it's own rule.
How does a life insurance company evaluate my risks?
The risk class or mortality of a policyholder is determined by an underwriting process through which a life insurance company would decide whether or not to accept a risk. The risk of death is determined by several factors such as age, sex, habits, personal and medical history, occupation, etc. The life insurance company's decision to insure your life is based on the information provided in the application form, the medical examination report (if required) etc.