India, Sept. 1 -- A homeowner's family might need income replacement and enough coverage to cover the outstanding home loan. This way, they can remain in the home without adding any more financial pressure to the family.

There is no fixed number for everyone. The number depends on your income, age, lifestyle, liabilities, and other parameters.

One easy way is to add income-based cover to outstanding financial obligations to arrive at a starting point for your overall requirement. Here are the numbers for our marketing manager under consideration, assuming 10 times the annual income purely for illustration:

The Rs.1.2 crore is the income-replacement component in this example, while the home-loan amount is considered separately so that t...