1. Select the right sum assured: A lower than required sum assured will mean that your family is not protected adequately. So it is important to assess your life insurance needs. You need to keep in mind your income, the number of dependants, and the expenses that are required to maintain the current lifestyle. Major life goals like your spouse’s retirement and the education of your child also need to factored in on the basis of the investments that are required to meet this goals. Life insurance providers have calculators on their website which will help you calculate your insurance needs. As a thumb rule, the sum assured should be at least 15-20 times your current annual income.