Have you purchased a term life insurance cover? If yes, great! You have secured the financial well-being of your family in the event of any unforeseen eventualities. However, when was the last time you revisited your plan? Do you think the term life insurance plan you bought a few years ago is still protecting your family adequately? With time, the needs and the lifestyle of our family changes. Hence, it is crucial that your insurance plan also changes accordingly. You must ensure that your term plan keeps up with the changing situations in your life.
Situations Where Your Term Plan Needs To Be Increased
- When You are Getting Married
After you marry, there is a good chance that your expenses will shoot up. Your lifestyle would change, and you would also have additional financial responsibilities. Your household expenses, including phone bills, medical bills, clothing, grocery and accessories, will also increase. Moreover, you must also consider the rising inflation rate in your mind. Your monthly bill today may cost you twice as much 10 years down the line.
Hence, it is important you make sure to increase your existing term plan, which would cover the additional financial responsibilities that arise after marriage.
- When You are Becoming a Parent
When you give birth to a new life, it is indeed a beautiful experience, but it also brings along tons of responsibilities. You will want your child to go to good educational institutions and pursue the preferred profession of their choice. But as we know, dreams come along with a price tag. To assure your child has a bright future, you must start planning today.
Most companies offer some of the best insurance plans in India, which enable you to enhance your cover after you become a parent. You can also conduct your independent research by looking for the best family life insurance plan on the web. Besides, if you buy whole life insurance online, some insurers may also offer you promotional discounts on their products.
- When You are Buying a House on Loan
When you purchase a house, there is a huge financial outflow, and you might need a loan to meet your goal. It would increase your financial liability, and if, unfortunately, anything happens to you, your family or loved ones would be liable to repay the outstanding loan.
Hence, when you purchase an expensive property, you must revisit your term plan, which should cover this added liability.
- When Your Income Changes Significantly
When there is a notable change in your income, you must consider increasing your term plan because, with an upward shift in income, your lifestyle and expenses would also change, which will continue even in your absence.
Thus, to ensure the lifestyle of your loved ones does not degrade when you are not around, you must increase your term plan coverage.
- During Unexpected Changes in Family Situations
It would be essential to review your term insurance plan after any unexpected events in your family. If, for example, the primary breadwinner of the house gets permanently disabled in an accident, the financial health of the family will be affected. Similarly, the policyholder might be diagnosed with a critical illness.
As a result, you should always consider your as well as your family’s medical history while buying a term plan. If you have a high chance of being diagnosed with a critical illness or you are indulged in an accident-prone occupation can revisit your policy and enhance the coverage by adding optional riders such as Accidental Death Benefit Rider, Critical Illness Rider or Waiver of Premium Rider based on your requirement.
You can buy the best term insurance plan for yourself and also pay all the premiums on time. But it would not be sufficient unless your plan addresses all financial requirements. Hence, it is important to revisit your plan regularly to ensure your life and that of your loved ones always stay covered in the face of different life events.
Hey, I am Raj. I am the owner and content publisher at Financenize. I have completed my education till intermediate school and after that turn to a full-time blogger and content writer. I usually share the quality information for the readers in Financenize, which helps the small business, individuals and entrepreneurs and the information I share makes their task more manageable. I am expert in analyzing the current situation and deliver a profitable period to the extent. You can find me on various social media handles online.