Page 77 - Life Insurance Today July - December 2020

into two — one until age 60, and the One must not confuse the need for a the age of 75 — your premium may
other until age 70-75 — would not only term plan with the need for health come to around Rs 21,000 per annum
help you optimise your cover, but also insurance. While term insurance starts for the next 40 years, aggregating to
optimise the cost. It is important to note to lose relevance after you have met Rs 8.4 lakh.
that if you live beyond 60, you won’t be all your liabilities, health insurance
needing the cover against home loan, becomes more important after Now, if you take a term plan for Rs 1
children’s education and marriage, as you retirement, and should be taken for as crore till the age of 60 and another
would have already met those goals. long as it is available. plan of Rs 50 lakh till the age of 75,
you will pay premiums of around Rs
Also in Explained Your Money | Tax It must also be noted that alongside 11,000 (25 years; Rs 1 crore) and
relief until June next year: should you the term plan, retirement planning
around Rs 8,000 (40 years; Rs 50 lakh)
buy a new home now? should also continue — if you have
saved optimally for your post- respectively — adding up to a total
How long should you take retirement life, you don’t need a term premium outgo of around Rs 5.95
lakh.
the cover for? plan beyond 60.
Ideally, the cover should be for the If you think you need to provide some In both cases, you will get a cover of
years when you build and have additional financial cover for your Rs 1.5 crore till the age of 60. After
liabilities and see additions in the spouse’s financial needs should that, since the need of a term plan is
family. The term plan should provide something happen to you between reduced and is limited to some cover
cover for the period till your kids ages 60 and 70, you can take a
complete their education and turn separate term plan of a smaller for spouse’s needs, by splitting the
independent, and you have built your amount that provides cover until 70-75. plans, you reduce your premium outgo
retirement corpus that is good enough significantly post-retirement. Also,
to sustain you and your spouse’s How can this optimisation since your post-retirement income is
financial needs for the remainder of limited, and you are in most cases
your lives. If you think you can do all help you save money? living on your savings, it is important
of that by age 60, you don’t need a Suppose you are 35 now, and are to optimally spend from your limited
term plan beyond 60. looking for a Rs 1.5 crore term plan till monthly income. (Source : Ind. Exp.)

FORM IV (SEE RULE 8)

1. Place Kolkata
2. Periodicity of Publication Half-yearly
3. Printer’s Name Satyajug Employees Co-operative Industrial Society Ltd.
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
Address 13, Prafulla Sarkar Street, Kolkata - 700 072
4. Publisher’s Name Sushil Kumar Agarwala
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
5. Editor’s Name CA Rakesh Agarwal
(Whether citizen of India?) Yes
(If foreigner, state the country of origin) No
Address 25/1, Baranashi Ghosh, P.S. Girish park, Street
Kolkata-700 007
6. Name and address of individuals who own the Sushil Kumar Agarwala
newspaper and partners or shareholders holding Proprietor
more than one percent of the total capital 31/1, Sadananda Road, P.S. Kalighat, Kolkata-7000 026

Life Insurance Today July - December 2020 77