Two investment dilemmas bother every enlightened investor: How much to allocate for the future in the best case scenario, and in the worst-case one. To be blunt, the question is: “How to make sure that my family lives happily -- with me and after me?”

In the worst case scenario, you are looking for insurance. And that means you need the guidance of a Human Life Value Calculator. It’s a simple online tool. Just enter these details:

● Annual household expenses

● Annual income

● The number of years your family should get an income

● Expected rate of inflation

● Expected returns

● Outstanding liabilities

● Current investments and assets

● Current value of insurance

The Human Life Value Calculator then calculates your net worth, how much income your dependents will need and consequently, how much insurance you have to take on.

But let’s look at the brighter side now. What are the regular instalments that you need to pay to invest in mutual funds? Systematic Investment Planning or SIP is proven to give great returns that will one day bring your dreams to fruition.

Utilise the helpful SIP Return Calculator India mutual funds offer. Enter these details:

● Your regular investment amount

● The frequency of investment

● The number of years of investment

● The expected annualised returns

Press the ‘Calculate’ button to find out how much you have invested, and how much will you get on maturity.

Your dreams and your family are under a safety net now. Congratulations!

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If you are already a 30-year-old non-smoker, and still do not hold a life insurance policy, then log on to a Human Life value Calculator immediately. The online tool will help you provide financial security to your family in your absence with the right amount. You can cover your life for Rs. 1 cr. for 30 years for less than Rs. 11,000 per annul (excluding Service tax).

The thumb rule is ineffective

A Human Life value Calculator finds out the exact life cover required by you. The thumb rule says that you should have an insurance cover of around 5-10 times of your annual income. Most of the Human Life Value Calculators are based on age, number of dependents, annual income and expenses, outstanding liabilities like home loan, car loan, investments/savings and lifestyle expenses, but forget to mark game changers -- rate of inflation and increasing rate of life expectancy. An HLV calculator needs to incorporate income from other sources, present values of investments and years you need to support your family and inflation rate too along with all the basic requirements.

Ride it away

No one plans to get sick or hurt, but in case of medical emergencies, nobody wants to impair their ability to earn by paying medical bills. You can maximize the benefits from a term insurance cover by adding riders (additional benefits) for covering you against critical illness or a serious accident? It’s a long term insurance policy where you will get tax-free ‘lump sum’- a one-off payment in case you are diagnosed with serious illness.

Riders are also available to cover your financial loss against partial/total disability and to cover your hospital stay (fixed amount per day of hospital stay).

So, what are you waiting for? Get on the task and get yourself some life even when you are not there. Live forever!

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