How much does life insurance cost

Life insurance costs could differ across individuals since one may be willing to pay more or less than the other. The decision depends on the level to which life insured can let his or her family face a financial burden. It is estimated that in India, on an average, a 35-year-old has to pay approximately Rs 2,620 per month as life insurance cost to protect his/her family against any financial uncertainties which life may throw at any point. To break down this cost, here are the five key policy needs of any individual:

• Rs. 1 crore life cover for 35-year-old male – tenure is 25 years

Monthly cost - Rs 1,000

• Health coverage for a family of four people – Coverage of Rs. 5 lakhs

Monthly cost - Rs 1,000

• Accident and disability insurance cover – Coverage Rs. 25 lakhs

Monthly cost - Rs 200

• House insurance cover of Rs. 50 lakhs; valuables cover – Rs. 10 lakhs

Monthly cost - Rs 250

• Vehicle insurance cover 

Monthly cost - Rs 170

Total monthly cost Rs 2,620

However, note that this is only an estimate and the actual cost varies from individual to individual. No matter the cost involved, a life insurance cover is very important because it helps with future financial planning. While you may be saving for your retirement, investing in your child’s education and also saving money for various other goals, life insurance is still critical. It helps your family to remain on track with the goals even if you are not around or unable to support.