Most people buy a term insurance policy and simply leave it at that, without considering the insufficiency of the cover as per the changes in life. As you go through the important stages in life, greater and newer responsibilities keep coming across your path. So, you took the policy when you were twenty-eight and carefree. But, now you’re forty and a parent, and that policy would certainly lack in providing adequate cover for your family.
With that being said, here’s outlining a few more life events that need to be taken into consideration as cues to enhance your term plan cover.
After You Get Married
The beautiful bond of marriage comes with the promise of sharing your life with your spouse. And, it also means additional financial outlays. Even if both of you are working and your combined income increases, your expenses increase in tandem. This is the time when you might think of having a new home or a new car.
So, you need a life insurance policy that is sufficient to financially support your life partner. Thus, it’s the right time to consider upping your policy cover.
When You Become A Parent
Did you know that the annual rate of education inflation stands at about ten to twelve percent? The cost of education goes even higher when you put your kids in a top-notch private institution. And, the costs keep on adding as they go from school to college.
Being the primary breadwinner of the family, it’s important to ensure that the academic needs of the kids remain unaffected even if you’re unable to provide for them.
When You Get A Promotion
After working hard for years, you received a promotion in your office. As you’re making more money now than before, you also have a better standard of living and your expenses have increased.
Therefore, the term policy that you bought when you had just started earning would not be sufficient for you under the present circumstances. After all, the policy is supposed to be a replacement for your income in your absence.
For Taking Care Of The Parents
You might be staying with your aged parents who need medical attention and remain dependent on you for their daily needs. In such cases, it’s crucial to hike the policy coverage keeping your parents’ future needs in mind.
The ever-increasing medical expenses might make it hard for your parents to handle their hospitalization costs, if any one of them gets diagnosed with a major illness in a couple of years. They have taken care of you for the longest time, and in order to take care of them, you need to reconsider your insurance cover.
Purchasing a policy and expecting it to cover all that you need for life is not a sound decision. Major life events like the ones stated above should make you rethink the present insurance cover that you have. Assess your financial situation and life scenario, and up your term policy cover when needed.