4 Types of Insurance You Should Have in Your 40s
Ideal Life Insurance coverage = Annual Income X 20 (Years left to retirement) according to the Income replacement method¹
If your employer offers health coverage for yourself and your family, then you may only need to assess if it is sufficient as per your needs. However, in case you and your family are not covered, then look through the many options to buy health insurance online. It is prudent to include all your family members by taking a floater health insurance for family. Use this calculation to decide how much cover you need:
Ideal Health Insurance coverage² = 50% of
Annual Income + Last 3 years’ Hospitalisation Cost.
Comprehensive motor insurance cover
Cover your liabilities
For example, most home loans can be taken along with a term cover, where the sum insured is aligned to the outstanding amount of the loan. It diminishes as the loan amount reduces on repayment.
Another option is to avail of life cover inclusive of your large outstanding liabilities. We have already covered why life insurance is required, so bundling it with large liabilities makes sound sense.
The core philosophy of insurance is to reduce financial stress and provide mental peace to the policyholder and their family. What better way to put away your worries and start enjoying your 40s.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
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