Reasons to top up insurance plans

Remember a famous computer game which was about racing high end bikes? It was called Road Rash. Certain bikes came with the advantage of a nitro boost feature which could be used anytime in the race. This nitro boost came in handy when the situation of the game had changed and you found yourself to be lagging behind other racers.

A top up plan with respect to insurance comes in handy when circumstances in life are about to or have changed.

Here are some reasons to top up your insurance plans

• Cost of hospitalization has increased – Various data points have shown that medical expenses in India are growing at a rate which is more than double of inflation. You may have purchased health insurance a few years back and the coverage may hardly cover half your medical expenses in case you are hospitalized.

• Inflation increases cost of living – You may have purchased a term insurance policy offering a coverage of Rs 40 lakhs a few years back. But do you think, in the event of your unfortunate demise, 40 lakhs would be sufficient for your family? Cost of every item keeps increasing year on year. If you are keen on ensuring a peaceful retirement for your spouse and the best educational opportunities for your children, you would seek to top up your term insurance plan. In case you haven’t purchased a term plan yet, you could check out HDFC Life Click 2 Protect 3D Plus.

• Increase in responsibility – Planning to get married soon? Or expecting a child? This means your responsibilities will increase. There will be other lives who would be depending on you. This is another reason to top up both your term and health insurance policies.

• Expensive milestones in life may be nearing – Your child’s marriage may be just a couple of years away. Or your child would be a few years away from pursuing higher education. Or you may be on the verge of becoming a parent. Imagine the financial impact of your absence or hospitalization expenses on these milestones.

These are critical reasons which should make you strongly consider topping up your insurance plans. In most cases, inertia or complacency prevents one from doing so. But misfortune can strike anytime and it is desirable to always be well protected and prepared to face unfortunate eventualities so that one’s loved ones do not lose out on the innumerable opportunities presented by life.