Getting hitched to your loved one is one of the biggest joys of life, one that is beyond words. And so is having your baby. These important milestones, when you start to build your family, bring along some special moments which cannot be matched with anything else. However, while being engrossed in the daily responsibilities of these life-changing events, we often tend to forget about its impact on our life insurance needs.
Meaning, the term plan that you purchased while being single, maybe sitting ideal in your cupboard’s drawer, stashed beneath your wedding attires or your baby’s toys.
However, circumstances like getting married, having a baby, building wealth, or career advancement play a vital role in determining how well your existing term insurance coverage is working for you. Put simply, these milestones in your life should serve as triggers for revisiting your old friend- ‘Term insurance’.
In this article, we shall focus on events which require revisiting and increasing your term cover and the reasons behind the same.
Building Your Family- “One Memory at a Time!”
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When You Say, “I Do”
From picking your honeymoon destination to choosing the paint for your bedroom, marriage is all about compromises, choices, and a ton of hard work. So, while planning your future together, don’t put off talking about what could occur if one of you passes away. If you arerelying on both salaries to cover household expenses, losing one income can be a startling financial burden. Therefore, ensure that your spouse’s future is financially secure in your absence.
For that purpose, revisit your term insurance plans, and make sure your current coverage is good enough for the new life change. If you still don’t have a life cover, buy one when you tie the knot and ensure adequate financial protection for your beloved. Insurers like Future Generali offer online calculators to help determine the coverage amount and premium payment. Make use of such calculators to buy yourself adequate coverage.
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When You Become a Parent
While you think of names for your little bundle of joy, also consider the costs associated with day-to-day needs, tuition, guitar lessons, college, and every outgrown pair of shoes. Yes, raising a child is a beautiful experience, but it’s also a challenging one, as it comes with a ton of responsibilities. As a new parent, it’s essential to make your child your priority and hence increasing your life cover to provide the best protection for your family becomes crucial.
Regardless of whether it’s your first child or your second, you must update your term cover to include your child’s educational needs and future goals. If something happens to you, your better-half can use the benefits of your term insurance plan to provide for child care, education and other expenses needed for support. This is a responsible step to keep the burden light on your spouse.
Building Your Wealth- “Courtesy, Income Growth!”
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When there is a Significant Career Growth
It’s only natural to upgrade your lifestyle as your career grows, to match it to your growing status. With increasing income, you may also think about building your wealth by expanding your investment portfolio.
Buying the latest car or a new home are a few examples of enhanced lifestyle. However, these changes may require increased investment, for instance, bank loans for purchase of a car or house. These costs are added to your family’s financial budget and should be secured by term protection, to avoid the burden of liabilities in your absence.
Therefor revisit your term plan to confirm whether your current coverage is sufficient or is it advisable to increase the same. The extra funds obtained from your salary hike, promotion and investment returns can be protected by increasing your coverage.
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When You Start A New Job
Starting a new job provides an excellent opportunity to increase your term insurance coverage. This is possible because, hopefully, with your new job, your income increases and gives room to increase your life coverage to get better benefits.
Only buying term insurance and paying the premiums on time is not enough. Just as you spend time researching the right term plan for you, it is equally essential to review all aspects of this financial investment periodically, more so, during life’s important milestones. This will ensure that your dear ones are well-protected at the time of need.
