Insurance is the foundation of a sound financial plan — yet many people are underinsured. A common rule of thumb can help you gauge how much cover you need.
The 10-15x guideline
For those in their 30s and 40s, planners often recommend life and health insurance coverage equal to 10-15 times annual income. The goal is to ensure that a family's living costs, debts and future needs are covered if the unexpected happens.
Protection first
Adequate life and health cover safeguards against medical emergencies and loss of income, preventing a crisis from derailing long-term goals. Reviewing your cover as income and responsibilities grow keeps protection in step with your life.
Sources: GripInvest, Policybazaar.