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When is the Right Time to Revisit My Term Insurance Plan?

By PolicyBazaar
  | Published: 10 December 2019 | Last Updated On: 08 February 2021

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Do you have term insurance?

If yes, then, Amazing! Your family is safe from unfortunate events.

But hey, when did you last revisit your policy?

Is this old term plan good enough to offer sufficient protection to your family?

Let’s find out the answer.

With time, the lifestyle and needs of our family changes. Therefore, your term policy must be updated accordingly so that it keeps up with the changing scenarios in your life.

Here are some crucial life-changing events that call for a revisit on your policy.

Purchasing a House on Credit

Purchasing a house involves a large amount of financial outflow. Most of you would resort to a loan for meeting the goal. While a home loan may help you in making your dream of buying a new house come true, it also adds up to your pile of financial responsibilities.

If something were to happen to the policyholders, their dependents will have to bear the liability of making repayment of the outstanding debts. Not being able to repay the loan may lead to the loss of the house.

Hence, it is important to revisit your policy when you purchase a house or move to an expensive property so as to cover the added liability.

Marriage: One of the Major Changes in Life!

After getting married, the expenses shoot-up. There will be obvious changes in your lifestyle, and of course, there will be an additional financial responsibility. There will be a rise in your daily household expenses including clothing, accessories, medical bills, phone bills, groceries, and more.

This, therefore, calls for a revisit on your term plan and increase it in order to cover your additional financial responsibility (your spouse), keeping in mind the inflation rate.

Considerable Changes in Your Income

Whenever there’s a considerable change in your salary or income, revisiting your term policy must become a priority. The reason behind this is that the rise in your income will gradually take you towards an upgraded lifestyle and more household expenses, which would be the case even in your absence.

Hence, in order to ensure a peaceful life for your dependents after you, revisit your term life coverage whenever there is an upward shift in income.

Having a Child

Having a kid is another step of marriage. It is a beautiful experience to welcome a new life in this world. However, as beautiful as it is, it adds up to your load of responsibilities.

As soon as your child is born, you start dreaming of its future. But, dreams come with a price tag on them. And the cost of raising kids keeps increasing as they grow up.

It is important to start planning for their bright future as early as possible. For starters, make sure that you increase your term insurance plan coverage for securing the dreams of your child from unforeseen circumstances.

Changes in the Situation of the Family

Any change occurring in the situation of the family due to unfortunate events in life such as an accident or disability makes it even more important for you to review your term policy. In situations like these, upgrade your plan for providing sufficient financial safety to your family.

Embracing the Changes in Life!

Purchasing a policy and making timely payment of premium is not enough, there is more to your term plan if you want it to suit your needs.

Hence, revisiting your insurance policy from time to time can be a great way of keeping your family prepared for different events of life.