Life events that call for reviewing your insurance coverage
27th August 2020
Our insurance requirements change at various stages of our lives as the nature of risks that we face evolves. As with your motor, health and home insurance policies, your life insurance cover should also be reviewed every year. However, given the various pulls on our time and monetary resources that’s not always feasible. But there are certain life events that can’t be ignored. As and when you enter those life stages, you must ensure to take stock of your term policy requirements and make necessary adjustments so that your loved ones are covered against any unfortunate eventualities.
Here are some of those important life stages that call for taking the #Decision2Protect:
Tying the knot is in itself a big huge financial expenditure for most people in the country. An individual needs to financially plan it for a few years in advance and one takes a marriage loan or loads up the credit cards for wedding related expenses then it might also take a year or two to pay off those debts completely. This change in financial circumstances, coupled with the addition of an immediate family member, alters our life insurance requirements — especially if the spouse is not working or doesn’t have a stable job. Navigating the expenses of a new married life is another factor to be considered while reviewing the term policy when you get married. It’s best to sit down with an experienced financial advisor and figure out how to go about it.
Buying a new house
Purchasing a new house is a long term financial commitment for most of us as we take a home loan. As such one needs to account for the added financial liability of paying EMIs for a long time (almost always over a decade) while reviewing their life insurance. Moreover, if you are the only earning member of your family or the other members would not be able to pay off the EMIs in case of an unfortunate event, you need to also take into consideration the home loan apart from financial protection of your dependants. It might seem like a daunting financial task at first, but there are quite a few affordable life insurance covers in the market that can help you achieve the goal of adequate term policy for your loved ones.
Becoming a parent
The arrival of a child is one of the biggest joys of an individual’s life. From Day 1 of a child being born, parents start planning their finances in accordance with the quality of education and life they want to give their kids. It is also important to account for what happens in case of the unfortunate demise of a parent. Even if the other parent is working, there are several new costs that come into the picture. As such it is vital for a secured future of a newborn that the parents purchase a good term cover early on. You might also want to consider hybrid life insurance plans that deploy a part of your premium amount as an investment while ensuring a secured sum assured.
Unexpected change in family situation
A major change in a family’s financial situation arising from an accident or disability of an earning member alters the income dynamics of the family. In such a situation, your financial responsibilities would increase, and as such the risk profile associated with you with regards to your dependants also undergoes a major shift. You must consider that and review your term policy accordingly.
Significant change in income
Whenever there’s a significant upward movement in your income, the lifestyle of your family is bound to see an upgrade. As such you must review your life insurance cover so as to adequately provide for your dependants in your absence.
One must be ready to embrace life’s changes by ensuring that the term policy is up to date. If you are planning to purchase a life insurance cover to protect your loved ones, do consider the HDFC Life Click 2 Protect Life. This plan provides you with 9 options to choose from. You also have the flexibility to choose your policy and premium payment terms with it. Its Life Stage Protection feature offers to increase insurance cover on certain key milestones without medicals and you can protect yourself for your whole life with the lifelong protection option.
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