I am told that the sum assured in a pure risk insurance plan has to be 10 times the annual income. I went ahead and bought a term plan with the sum assured as 10 times my current annual income. But after 3-5 years my annual income will increase. In that case should I increase the amount of the sum assured? Bhuvan Rathore,Delhi Term insurance cover should be increased at regular intervals in life and especially when there is a new member in the family or as in your case when there is an increment in income and/or liabilities. There are different types of term insurance plans of which one is an increasing term plan,which has a built-in increasing cover option at certain intervals. It is a good option but I would still recommend taking a new term insurance policy every time you feel that there is a gap between your existing risk cover and the ideal risk cover. I am 35 and want to purchase a term plan for me and my wife. I earn Rs 50,000 per month and my wife,32,earns Rs 28,000 per month. We have a 4 year old son. Which is the best term insurance plan right now? Should I take a term insurance plan for my wife? Which insurance company has good performance on parameters like maximum policies sold and lowest claim rejection ratio? Selviraj Manikaran,Hyderabad It is a good decision to take a term insurance plan for yourself and your wife. Also if you take it now,the premium shall be a little low as compared to later on in life. You can look at a term insurance plan with at least Rs 50-65 lakh sum assured for yourself and a Rs 30-45 lakh term cover for your wife. Additionally,you can take a monthly income or pension plan for your wife to keep the savings going on regularly. When it comes to cheap term insurance plans,there are some companies that have launched online term plans that are competitively priced,such as: Aviva iLife,MetLife Met Protect,ICICI Prudential iProtect and Kotak eTerm. What happens if I miss the due date of premium payment of my life insurance policy? Prashant Singh,Gwalior Paying the premium within the due date is as important as paying the premium itself. The policy would lapse in case premiums are not paid and the cover would cease to exist. Then,depending on the policy and the number of premiums paid by you,the policy may or may not acquire a paid-up value. Some companies do provide a grace period after the due date. Deepak Yohanan is CEO,MyInsuranceClub.comFor your personal finance queries mail us at,expressmoney@expressindia.com
