Check these points while reviewing life insurance policy in 2022

The pandemic has demonstrated how crucial the role of life insurance can be in our lives. Experts also advise that it is a good practice to review one’s life insurance coverage once in every year. Events such as buying a new house, getting married, having a baby, or changing jobs could be some events in life that change the protection requirement of you and your family. The purpose of having a life insurance is to protect a family against an unforeseen situation. Life insurance is meant to provide financial aid in case of the untimely death of the earning person of the family. So before renewing the existing life insurance policy one should keep these six points in mind.

Sufficient coverage

You know how much you need to spend every month and plan the insurance amount accordingly. At least your life insurance coverage should not be less than 1,000 times of your monthly expense. If you spend Rs 20,000 right now on monthly expense, then your life insurance coverage should not be less than Rs 20,000 X 1,000 = Rs 2 crore.

If you are not going with this formula, then also your life insurance policy should have good a sufficient coverage so that your family is secured in your absence. Reviewing your existing insurance plan necessary to ensure that you have sufficient coverage this year.

Policy changes with lifestyle

It becomes very important to change your life insurance policy to some degree with every major change in your life. For most people changes in insurance strategy are advisable on a regular basis as one would do for other policies.

It has been observed that a gradual change in life insurance needs of an individual also depends on his or her changing lifestyle.

Additional coverage

Additional coverage benefits have become common like lifelong coverage, international coverage, cancer coverage, accidental coverage of coverage for modern treatments, etc. It is, therefore, time to review whether your existing plans have these new-age additional coverage benefits or not. If they don’t, it’s time to change your plan and go accordingly.

360 degree family coverage

Getting married or having a child is one the most important thing to review of the existing life insurance coverage. A new member in the family is one of the biggest changes one can encounter in life. Considering the change, most of the people will add enough life insurance cover to prepare for any unforeseen situation.

As your family grows, it’s a probably a good idea to increase your overall amount of life insurance, say experts.

Change in income

With time your income changes and it is usually accompanied by changes in financial status of an individual. Whether you get a promotion or hike in salary, all of this calls for new financial decisions.

Whenever you switch your job or experience a hike in your salary, you must review your life insurance policy as this could help your loved ones to maintain their current lifestyle even your absence.

Timely planning

Financial planning is very important in one’s life. It is a wise decision to review each investment at the end of every year. Any alteration, be it in health or life or even car insurance, should be done in the New Year.

The broad goal should not change. That is to have maximum level of protection for the family in your absence.