Increase Life Insurance With Term Plans After 4 Life Events

  Author: Naveen Kumar

You will not disagree with us if we tell you that your loved ones need to be financially secure at all times. This means that even in your absence, they should be able to lead regular lives and pursue their dreams without financial worries. This is something that adequate life insurance can ensure. That is why you need to ensure that your family is covered by adequate life insurance at all times. This means you need to pay special attention in enhancing life insurance coverage after four major life events.  After these events, you can increase life insurance coverage with the help of high coverage and low premium term life insurance plans. 

After marriage When you get married, you need to provide financial protection to your spouse. As a thumb rule, ensure that you increase your life insurance cover at least by 5 times your annual income. You may consider a higher amount, say 10-15 times of your annual income, if your spouse is not working.

After the birth of a child With the entry of the bundle of joy in your world, your first port of call needs to be increasing your life insurance cover through a term plan. Remember, the coverage should be able to meet your child’s regular expenses and major future expenses like higher education, in your absence. The thumb rule: increase life insurance cover by at least 5 times your annual income.

Big ticket purchase with a loan If you go for a big buy like a car or a home with the help of a loan, in your absence, your family may become financially vulnerable to the burden of loan repayments. The family members may find it difficult to maintain the assets and might even have to sell them off.  To prevent this from happening, increase your life insurance for an amount equal to the amount of outstanding loans. Again, a cost-effective way of doing this is to buy a fresh term plan.

Substantial increase in income Your lifestyle and future goals typically get enhanced with increase in your income. To protect both for the sake of your family’s future, you need to ensure that your life insurance coverage keeps pace with the financial progress in your life. Here again, term plans come to your help by ensuring adequate coverage.