What are the Reasons that emphasize the need to review Life Insurance Cover every year?
Is reviewing your life insurance cover an essential thing to do every year?
This can be an obvious question that many people may get in their mind. But can you tell about how many people really give importance to review their insurance plan and think of a revamp at the end of every year? The answer will be no one. The main reason for this is the lack of awareness of the importance of reviewing and revamping your policy.
When your income increases year by year and your family is growing year by years along with the rise of your financial commitments, why the life insurance cover should remain the same? It is imperative also to consider revamping your insurance coverage over the years as your lifestyle and income keep changing.
If you are still unclear, here follow some valuable reasons why you need to review your life insurance cover:
- Marriage: At the time of taking a life plan, maybe you are single. Simultaneously, the number of dependents will also be just limited with your parents if they are not earning, or you may not have any dependent too. But once you are married, the number of dependents start increasing. Therefore, you cannot continue with the same life cover for your term plan that you were having when you were single.
- Childbirth: After your marriage, it is evident that your family’s size will increase starting from spouse to children. Thus, the number of dependent on you will again increase. Your commitment to give extra financial security to your family also increases and therefore, you need to review your policy every year to revamp and increase the life insurance cover.
- Children education: The next new commitment you get in your life over the years is your children’s education. You have the responsibility to give quality education to your children, which you cannot compromise too. Therefore, you should consider reviewing your life insurance coverage every year without missing it.
- Health of your spouse and parents: Everyone will get older as the years roll on. Therefore, your medical expenses will also start increasing. The same is also applicable to you, as even you are getting older and is at the risk of medical expenses. Therefore by reviewing your life insurance cover, you can consider adding the rider benefits such as critical illness benefits, accidental death benefits, premium waiver, disability benefits, and others. This can give you some peace of mind too. You might not have taken any rider at the time you bought the life plan, but over the years you may realize the importance of such benefits.
- Buying a new home: Everyone will want to have a home of their own. But this is not possible by keeping lakhs and crores of money on hand. Therefore, people end up taking home loans to fulfil their lifetime dream. In this case, the burden of a home loan may become a threat to you as such a huge burden should not fall on your family members.
- Debts: Today, with the increasing cost of living but a stable and slow phase increase in income, meeting the day-to-day expenses becomes a challenge. Therefore, people end up taking loans like credit card loans, personal loans, and others. But such a financial burden is also another threat to the family in case the insured demises. At the same time, the life insurance cover, which you might have taken at your young age, may not be sufficient now to meet such a huge financial burden. Therefore, you should consider reviewing your life insurance cover at the end of every year without fail.
- Long-term care of your loved ones: If you feel that your loved ones may need long-term care, you should undeniably consider reviewing your life insurance cover. For instance, if you have a special child, who is not normal and seek continuous support from another to lead his/her life, then the money also plays a vital role to support the same. In your absence, your child and spouse should not be left helpless. Therefore, in this case, regardless of your unexpected loss, or a natural loss, you are still obliged to give protection to your child or loved ones that seek prolonged support.
- Your income: Besides all the above-said reasons, your income also plays a vital role. Your income is not going to remain the same throughout your life. If so, then you cannot think of even leading the simplest life in this world. Therefore, no doubt that your income will keep increasing year on year to at least some percentage even if not hugely. When your income is increasing, why should you continue to hold the same life insurance cover? You can very well consider reviewing your life cover and try to expand to the maximum possible. This is only going to benefit you and your family to meet any financial commitments after you. Therefore, never ignore the importance of reviewing your life insurance cover periodically every year or as frequently you can.
To make your job simple and easy, Bimakaro.in provides you with the most flexible service. If you are looking to review your life insurance cover and wants to update according to your growing needs, then BimaKaro.in provides you with the best support without taking much of your time and efforts.