Quote Originally Posted by SushantJindal View Post
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.


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.