Your coverage needs depend on your personal circumstances. Factors that you must consider include anticipated final expenses (e.g. medical bills and funeral fees), living expenses for your family members who are still alive, any unpaid loans (e.g. car loans and credit cards), outstanding balance on your KPR , anticipated tuition fees for your children, even the cost of continuing the business.
A simple way to reach a "minimum point" is to take a multiple of your annual income and adjust the factors listed above. We recommend ten times your annual income to get started. Remember that your needs will most likely change over time and what seems to be enough today may be inadequate in ten years. Usually, the best is to take the maximum sum insured while considering future needs.
Most insurance companies allow a certain multiple of your annual income based on your age and are usually flexible if you can show other needs. The amount you choose is up to you for the most part; however, you need to justify the ability to buy the package whether or not it fits your budget. You can see the Life Insurance Needs Calculator that is widely available on the internet to help determine the amount of coverage you need.
What happens at the end of the policy period (the end of the life insurance policy)?
Most policies can be renewed every year at the end of the policy period, up to the age of 105 years. This policy does not expire at the end of the policy period, but the guarantee rate applies. As a result, it will be very expensive to maintain policies outside the initial period.
Most people allow the policy to expire at the end of their tenure and issue new ones, as long as they are in good health and can obtain new policies. If your health has changed and you can no longer be insured, you can maintain the policy by paying new rates. The exchange rate will continue to increase every year until the policy ends.
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