Personal Finance

Spend less than you earn, invest the rest

Novice

Mastery0%

Novice

Note. Education, not financial advice. Tax rules, regulations and product specifics change, for real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 14 of 19

framework

Term insurance sum assured rule of thumb

Cover should equal at least 10 to 20 times yearly income plus debts, paid out as tax free lump sum.

Definition

A guideline for how much life cover a term policy should provide, typically 10 to 20 times annual income plus outstanding liabilities.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.