As we enter the new financial year, it is imperative to pause and evaluate our investment choices and areas for enhancement. With significant milestones and the pursuit of bigger life goals, meticulous planning takes precedence in financial planning. During this strategic planning phase, the importance of addressing financial security stands out prominently.

According to the Bajaj Allianz Life Goals Survey 2.0, 71% of participants prioritized securing their family’s financial well-being as their paramount life goal, with remarkably 65% favouring Life Insurance as their top investment choice to achieve these life goals.

It is an opportune time to assess your financial portfolio and add new investment options to align with your evolving life goals.

Here is a quick guide to get you started:

1. Is your coverage adequate?

Begin by assessing your current life insurance coverage, taking into account shifts in family dynamics, newly acquired assets, or additional liabilities. Conduct a thorough examination of your financial landscape, encompassing outstanding debts, dependents, and the financial requirements of your loved ones in the event of your passing. Modify your coverage as necessary to ensure a comprehensive and tailored protection plan.

Also Read: 7 key retirement planning strategies to consider at every age

2. Have you checked the fine print?

In the event of an unforeseen circumstance, the last thing you want to discover is that you’re not eligible to make a claim, because you missed a limitation or exclusion in the fine print. The fine print in a policy document refers to the terms and conditions including specific exclusions, restrictions and limitations of a contract. Claims disputes often arise from insufficiently reading exclusions or misinterpreting terms and conditions. Therefore, it’s imperative not only to understand these terms when signing but also to revisit them to ensure they are aligned with your new goals. Pay keen attention to factors like premium schedules, policy exclusions, and benefit limitations. For any queries, promptly reach out to your insurance provider.

3. Do you need additional protection or investments?

As you progress in life, your priorities evolve. Perhaps that long-awaited international vacation is now deferred to accommodate a new addition to your family. Hence it’s wise to reassess your financial portfolio, considering additional protection and investment avenues and make the necessary adjustments to augment your coverage or income. Evaluate your current lifestyle and health to gauge the potential benefits of these options for the overall financial security of you and your family.

4. When Was Your Last Financial Check-Up?

Life insurance is intricately tied to your financial well-being. Just like a health check-up, regularly assessing your financial status is crucial. This evaluation sheds light on your current debts, and assets, and aids in formulating strategies and prudent investment decisions. A strong financial foundation not only ensures your ability to meet insurance premiums but also maintains the financial stability of your loved ones in unforeseen circumstances.

5. Is Your Policy Aligned with Your Evolving Lifestyle?

As life unfolds, significant shifts in your lifestyle may occur due to changes in career, residence, or personal relationships, impacting your financial needs. If you’ve acquired a mortgage or taken on new debts, it’s essential to adjust your coverage to meet these financial responsibilities. Additionally, lifestyle choices also play a role in determining life insurance premium rates. For example, some insurance companies now reward policyholders with healthy lifestyles through reduced premiums, loyalty benefits, or discounted rates for specific categories. Hence it’s a good idea to regularly assess your life insurance in light of these changes to ensure you get the best leverage to suit your specific needs.

Let’s be more informed, aware and approach this new financial year with a well deliberated financial plan and life insurance strategy.

(By Dheeraj Sehgal, Chief Distribution Officer – Institutional Business, Bajaj Allianz Life. Views are personal)