Readers' Corner: Life Insurance

Life insurance riders offer additional benefits and coverage at a low premium.

I am a 30-year-old professional earning Rs 1.2 million a year. I got married two years ago and am thinking of buying a term plan. But I am unable to decide the duration and amount of cover. I am also unsure if term plan will be enough to protect my wife's financial security.

The primary objective of a term plan is to act as an income replacement tool. It eliminates the financial burdens of a family in case of an untimely death of the earning member. Hence, it is always prudent to opt for a term plan until your retirement age.