How much traditional life insurance a family needs
Sizing traditional life insurance is where most households either overpay or under-protect. Rarely the right vehicle for either job — cover is thin and returns trail inflation. Where one already exists, know what it pays and when.
The sizing rule
Rarely the right vehicle for either job — cover is thin and returns trail inflation. Where one already exists, know what it pays and when.
Adjusting it for your household
Rules of thumb are starting points. A single-earner family with young children and a home loan needs more than a dual-income household with no dependants. Count what would still have to be paid if the worst happened — EMIs, school fees, living costs — and size the cover against the gap, not against a formula.
Reviewing it as life changes
Marriage, a child, a home loan, a job change, a parent moving in — each of these changes the number. A cover level set once and never revisited is usually wrong within five years.
Where FamTally comes in
FamTally holds every policy the family has — traditional life insurance included — with sum assured, premium, frequency, renewal date and the members it covers. It totals your cover so gaps are obvious, puts premiums into your monthly cashflow, and reminds you ahead of each renewal. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
What does traditional life insurance cover?
A mix of a small death benefit and a savings component, usually endowment or money-back.
How much cover should we take?
Rarely the right vehicle for either job — cover is thin and returns trail inflation. Where one already exists, know what it pays and when.
What happens if it lapses?
Premium due dates matter; surrendering early usually returns much less than you paid.