How much insurance do you require?

  • Life Insurance


A good life insurance policy can protect your family's future in your absence. Having adequate life insurance will ensure that your family can maintain the same standard of living in case of an unforeseen event but what about the amount of coverage? How much is enough?

Calculating the amount of coverage is a simple process:

  • First, calculate your family's annual expenses
  • Ideally, you should prepare for a time frame of 15 or 20 years. So multiply your annual expenses by 15
  • Ideally, you should prepare for a time frame of 15 or 20 years. So multiply your annual expenses by 15
  • Finally, deduct the value of the assets you own, like the value of an apartment, savings in gold, FDs, etc. You will also have to deduct the expenses related to your wish list – sending your daughter abroad for education, her marriage, etc.

The final amount you get is known as the Human Life Value (HLV). Simply put, this is the amount of life insurance you require.

The simple formula for calculating HLV is:

HLV = (Expenses towards family * HLV factor) + Liabilities – Assets and Dreams

First, calculate your family's annual expenses

  • Age: Your life insurance needs should change according to your age. For instance, when you are young, you may require a small amount of coverage. However, as you get married and have more responsibilities, you may need to increase the coverage amount.
  • Annual income: The life insurance premiums will come from the amount left after deducting your expenses. You hence need to look for a plan which is affordable for you. Also, according to experts, your life insurance cover should be eight to ten times your gross annual salary. For instance, if your gross annual income is Rs 1,00,000 then your life insurance coverage should range between Rs 8,00,000 to 10,00,000.
  • Financial goals: Your financial goals can be based on your immediate cash requirements or your long-term needs. For instance, if you need a certain amount for your children's education or marriage, you need to choose your coverage amount accordingly. This is to ensure that those goals are met even in your absence.


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Term Products

ABSLI Life Shield Plan

A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V06

  • Choice of 8 plan options
  • Cover your spouse under the same policy
  • Longer Life cover till age 85

ABSLI DigiShield Plan

PROTECTING multiple life needs with one plan is now possible. UIN 109N108V08

  • 10 Plan Options to suit your varied protection needs
  • Flexible death benefit pay-out options
  • Life insurance cover for 1 year or till age 100 yrs

ABSLI Saral Jeevan Bima

A simple plan to protect your family’s financial future (UIN 109N128V01)

  • Simple & affordable plan
  • Flexible premium paying terms
  • Enhance insurance cover with rider

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