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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Income Replacement Through Life Insurance

One of the most common questions in financial planning is: how much term life insurance should a person actually have? You may hear rules such as 10 times or 15 times annual income. While these thumb rules are a good starting point, a simple Excel sheet can help you understand the actual requirement better. The basic purpose of term insurance is income replacement. If the earning member of a family dies, the family loses not just today’s salary, but the income that person could potentially...

Income Replacement Through Life Insurance

One of the most common questions in financial planning is: how much term life insurance should a person actually have? You may hear rules such as 10 times or 15 times annual income. While these thumb rules are a good starting point, a simple Excel sheet can help you understand the actual requirement better. The basic purpose of term insurance is income replacement. If the earning member of a family dies, the family loses not just today’s salary, but the income that person could potentially have earned over the remaining working years. That future income would have supported the family’s lifestyle, regular household expenses and long-term goals such as children’s education and marriage. Start With Four Inputs Open an Excel sheet and enter four basic assumptions: your present age, your current annual income, your expected annual increment and the age up to which you expect to work. Suppose a 30-year-old earns Rs 10 lakh per year and expects to work until age 55. Assume the income rises by 6 per cent every year. In the first row, enter Rs 10 lakh. In the next row, multiply the previous year’s income by 1.06. The following year, repeat the same formula and drag it down until age 55. Thus, Rs 10 lakh becomes Rs 10.60 lakh in the next year, then approximately Rs 11.24 lakh in the year after that, and so on. When all these projected annual incomes are added together, the total is about Rs 5.9 crore. See the Bigger Picture That is the interesting part. A salary of Rs 10 lakh may not sound enormous when viewed for just one year. But when you look at the earning potential over the next 25-odd years, the number suddenly becomes close to Rs 6 crore. This is the income stream your family is financially dependent on. The result also changes substantially when the assumptions change. If annual income growth is 8per cent instead of 6 per cent, the projected cumulative income rises to approximately Rs 8 crore. Similarly, a younger person with more working years ahead may have an even larger amount of future income to protect. Use Excel to Get Perspective This is why merely choosing an arbitrary Rs 50 lakh, Rs 1 crore or Rs 2 crore cover because the number sounds large may not tell the full story. Even the commonly used 10-15 times income rule is just a starting point and may not be sufficient. Excel makes the magnitude of your future earning capacity visible. Of course, this calculation need not be treated as a rigid formula or an instruction to buy exactly the amount that appears on the screen. Its purpose is to give you perspective. Term insurance is ultimately about replacing the earning capacity your family could lose if you were no longer around. Put your own numbers into a spreadsheet and project your income year by year. You may be surprised at how much you are actually expected to earn over your working life - and therefore how much financial protection your family may truly need. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Chasing Moments in the Wild

Photography and filmmaking allow people to engage with wildlife in a way that reading about it cannot.

As a passionate advocate for wildlife conservation and immersive encounters I am engaged with the great outdoors.


As the founder of Aayu Expeditions, established in 2006, I have dedicated my career to transforming how people interact with wildlife. Driven by a childhood fascination and a career shift that defied convention, I have created a company that offers breathtaking adventures while emphasising education and sustainability.


Through my journey, I exemplify the impact a love for nature can have on personal and professional pursuits, inspiring countless individuals to reconnect with the natural world.


My passion for wildlife and astronomy began early, fostered by my father’s encouragement. I recall gazing at celestial events such as solar and lunar eclipses, as well as witnessing Saturn and a lunar occultation.


However, my experiences at the Sanjay Gandhi National Park in Mumbai, where I observed wildlife in captivity, sparked a deeper longing for authentic encounters with nature.


Wildlife tells a different story than astronomy. You can’t simply watch it on a screen; you have to venture into the wild.


This realisation led me to leave my job at Hathway India and pursue my dream of establishing a wildlife safari company. My first tour at the Ranthambhore Tiger Reserve in 2006 marked a turning point, proving to be a success and laying the foundation for Aayu Expeditions.


This journey taught me to swim against the flow and stand strong against all odds in life.


Aayu Expeditions blends education, adventure and sustainability into every journey. It emphasises the importance of learning from the wild, drawing parallels between wildlife photography and life lessons.


Only wild animals can teach you wildlife photography. Patience, concentration and adaptability are the qualities essential to both photography and life.


Wildlife tourism is a lifetime adventure that people of all ages can experience. It includes the thrill of witnessing nature’s dramatic moments—lions chasing deer, elephants crossing roads and the breathtaking migration of wildebeest.


Sustainability is at the heart of Aayu Expeditions’ mission. I distinguish between sustainable tourism, which focuses on preserving forest discipline, and responsible tourism, aimed at creating job opportunities for local communities.


Since day one, I’ve emphasised these two aspects of wildlife tourism. Safeguarding forests and supporting local populations helps preserve ecosystems and biodiversity.


I believe visual storytelling is crucial for wildlife conservation. Photography and filmmaking allow people to engage with wildlife in a way that reading about it cannot.


Wildlife Safaris

My wildlife photography has taken me to more than eight countries so far. My favourite destination is the African savannah, while the leopard is his “celebrity predator”.


One of my most memorable encounters came on February 19, 2026, at Kenya’s Maasai Mara National Reserve.


At sunset, I encountered a male leopard perched on a tree with its kill. With only his guide and him watching, I had a unique opportunity to photograph the animal’s different expressions. I spent almost two hours with him and, frankly speaking, I didn’t feel like leaving the area.


The real excitement lies in seeing and photographing the Royal Bengal Tiger rather than the Asiatic or African lion. Wildlife photography is ultimately about patience and waiting for the right moment. You shake your head and you miss an opportunity.


Worldwide Exhibitions

I have led to international recognition, with exhibitions held in Bali, Colombo, Mumbai and Cairo. I am India’s first wildlife photographer to exhibit in four different countries. My Mumbai exhibition was hosted by the Consulate General of Sri Lanka, while his Cairo exhibition was supported by the Embassy of India in Egypt.


These projects not only enhance the experience for our clients but also help spread awareness about wildlife conservation through direct and social media marketing.


My vision is about creating lasting memories while fostering a deep respect for nature.


(The writer is a wildlife photographer based in Mumbai.)

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