Here is calculation for one Mr Vijay Kumar, aged 30 years, earning Rs 8 lacs p.a., having 4.80 lacs p.a. as household expenses. He wants to ensure Rs 40000 p.m.(4.80 lacs p.a.), , for his family till his age 55. He has savings of 10 lacs and is already insured for 15 lacs. The table shows that the family needs a capital of 73.77 lacs invested @ 9% to achieve this goal, in the case of loss of his life. As he has a provision of 25 lacs ONLY ( 10+15 lacs ), he immediately needs insurance of 49 lacs to safe guard his family.increasing by 4% p.a. to fight inflationThe following chart shows beautifully that the capital of 73.77 lacs can produce annual income of 4,80,000 ( 40000 monthly ) for next 25 years, increasing by 4% per year to take into account inflation factor. It is interesting to note that a family which needs 4,80,000 in 2016, will need 12,79,601 in 2041 to maintain same standards due to cost rise of only 4% p.a. IF YOU WANT THIS CHART FOR YOU, FOR YOUR INDIVIDUAL USE, WITH YOUR FIGURES, PLEASE SUBMIT YOUR DATA IN THE FORM ON NEXT PAGE. |