You have bought insurance some years ago to keep your family financially protected in the event of your untimely demise. But did you consider increasing the cover? Maybe you did not. But there are life events which should make you think of increasing your insurance cover.
FeMoney spoke some insurance experts to understand the triggers which should make you consider increasing your insurance cover.
Naval Goel, founder and CEO, PolicyX.com says that the triggers could be life events or an increase in your income levels. “Life is not certain and there are times you come across sudden situations where you exhaust your current policy limits. Those are the times when you should think about increasing your policy cover, like when you get married or have a child or have a senior citizen dependent on you or when you need additional medical financial assistance. These times call for a re-evaluation of the coverage you require. For term plan, if your income rises substantially, you can get a higher cover. So it is always better to add on the sum assured as per your eligibility,” Goel said.
Yashish Dahiya, co-founder and CEO, Policybazaar.com also feels that insurance cover should be increase after marriage or when one has children. “As you get married, you become responsible for your partner. Thus, it would be wise to increase your insurance cover so that in the event of your death, your partner gets an adequate lump-sum amount to take care of the financial needs,” Dahiya said.
He said that additional insurance should be purchased to cover costs required for a child’s future. “As you start a family, you as a parent are responsible for your child’s bright future. However, life can be cruel and in case you die early, you need to ensure that your child or children’s future is not in a jeopardy. Thus, increasing your life cover after calculating your future needs is important if your current cover is not adequate,” Dahiya said.