Do you have a term insurance plan for your family? If yes, then you have secured the future of the dependant members. But do you need to revisit the plan or is it adequately securing your family’s future with the changing lifestyle.
Let’s check out few such times when you need to revisit your term plan and change them according to your changing life goals.
Your responsibilities keep cumulating when you get married or have children. You may also have to take a loan for your home or your car and for this reason you may need to visit your term insurance plan from time to time.
Here are the key times when you need to revisit your term insurance plans and make the necessary amendments.
When you get Married: Your expenses are bound to shoot up when you get married. With added responsibilities comes in added expenses such as basic household expenses, clothing, accessories etc. These expenses would further increase manifold times when the inflation factor is placed. So, if your monthly expenses are 50k at the present times, it would increase to 1 lakh in a matter of 10 years due to inflation.
Therefore, once you get married you should estimate the amount that your family would need keeping the rate of inflation in mind. So, your existing Term insurance policy would need a revision to increase the assured sum.
When you become a parent: Once you become a parent you add on a lot of responsibility. Every parent dreamsof giving the child the best of the future and giving them the best education. With the rising inflation the cost of education is also quite high and dreaming of giving them the best of education would be quite high. To ensure that your child continues his/her education even in your absence and gets the desired education, one should choose a revisit the plan with a 25% hike in the cover.
Buying your house on loan:
You may dream to buy your own home and for that you may have to opt for a home loan. Home loan helps you realise your dream of having your own home while it increases your financial liability. If you meet any unfortunate event the liability of the loan shifts to your family which may turn their economic condition upside down.
So, if you have any outstanding debts, you should increase the assured sum of your term insurance coverage so that in your absence all debts are paid off and your family gets the remaining amount and continue being financial stable.
Changes in income scenario:
As and when you have a significant change in your income i.e. your income increases, you should think of revisiting your term plans. Changes in income lead to a change in the lifestyle and to be at par with the existing lifestyle even in future, a higher sum would be needed.
Here are few vital situations in your life that would need you to invest more in your term insurance plans.
