Being your own boss feels great. You make your own rules, choose your projects, and build something from scratch. However, with this freedom comes a significant responsibility – protecting your family's future in the event of your passing.

Many self-employed people wonder if they need life insurance. The answer is usually yes. And the next question is: how much coverage is enough? Let's talk about whether 2 crore rupees is the right amount for you.

When you work for a company, you often get some insurance as part of your job. But when you're self-employed, nobody is giving you these benefits. You have to arrange everything yourself.

Here's what makes self-employed professionals different:

• No steady income guarantee – Your income can go up and down. Some months are great, others are slow. Your family needs protection against this uncertainty.
• Your income stops if you're not there – Unlike a salaried person, whose family might get some company benefits, your business income stops immediately if something happens to you.
• You might have business loans – Many self-employed people take loans to grow their business. These debts don't disappear and can become a burden for your family.
• No employer insurance backup – You don't have group insurance or other company benefits to fall back on.

When we say 2 crore term life insurance, we mean if something unfortunate happens to you, your family gets 2 crore rupees. They can use this money to:

• Pay off any loans
• Cover daily expenses
• Pay for children's education
• Maintain their lifestyle
• Handle medical or other emergencies

The best part? Term insurance is very affordable. You pay a small amount every year, and your family gets this large sum when they need it most.

Whether 2 crore is enough depends on your specific situation. Here's a simple way to think about it:

Add up your needs:

• Outstanding home loan: Let's say 50 lakhs
• Children's education (until they finish college): 40 lakhs
• Your parents' medical needs: 20 lakhs
• Daily expenses for family for 20 years: 1.5 crore
• Emergency fund: 20 lakhs

Total: 2.8 crore

In this example, 2 crore might not be enough. But every family is different.

Think about these questions:

Do you have a home loan or business loan? How much is left to pay?

How many children do you have? What kind of education do you want for them?

Do your parents depend on you financially?

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