Over time, possibilities and challenges come to life, so you should prepare yourself for the challenges. You can save yourself from the troubles caused by uncertainties in your life by updating your life and health insurance plans. The new year has started. This is the right time to assess your current situation, evaluate your insurance needs and compare them with the pre-existing covers etc. So through this post we are going to give you information about the things that you should consider while assessing your insurance covers.
Checklist for life insurance
A life insurance policy is an agreement between the policyholder and the insurance company. Under the policy, the insurer agrees to pay a certain amount on the accidental demise or natural death of the policyholder during the policy period in exchange for the regular premium payment made by the policyholder. If you already have life insurance, then you need to evaluate your current circumstances. You can re-examine your life insurance policy and make desired changes according to your need. You should consider the following things for life insurance –
Adding a new family member – If a newborn baby is going to be born in your family, then you will definitely want to include it under your insurance plan. So you have to expand your cover by determining the correct cover. Extending the cover also increases the sum assured or death benefit. So consider your changing circumstances and increase your cover accordingly.
On the death of a family member – If a member of your family has died, you should consider the status of your policy. Because if the nominated member dies in the policy, you will need to make the necessary changes. Life insurance cover is any way to cover life risk and provide financial security to the members of your family. Therefore, if your family members have fallen short, then consider your cover and needs and make desired changes as per the requirement.
In case of reduction in family liability –
If your responsibilities are reduced, you need to reschedule your insurance cover. For example, if your child is about to get a job, then there will be some reduction in your responsibility. In such a situation you will need to change your policy. Also, if you have recently taken a home loan, you can consider reducing your insurance cover. After fulfilling your major responsibilities, you can change your insurance cover.
The main purpose of life insurance cover is to provide adequate financial support to their dependents in the event of an unfortunate event. If you have adequate life insurance cover, then even if you are not, your family members do not face financial problems. Therefore, assess your life insurance cover over time and change it as per the need.
Checklist for health insurance
Health insurance also plays an important role in our lives. You should reevaluate your health insurance cover considering your changing health status. While revising your health insurance, keep the following things in mind –
Changes in group health insurance –
Most employees rely on the health insurance provided by their company. If you have not yet purchased an individual health insurance plan, then you should have sufficient knowledge about your group insurance plan and changes in it from time to time. For example, know if the new cover is sufficient for your health? If you find the cover insufficient, you should plan to purchase a personal health plan.
When your health changes – Has your health changed over the years? For example, people are suffering from diseases like diabetes or cholesterol due to increasing age. If you too have gone through such a change or feel that you may have some other problem in the future, you should evaluate whether your health insurance is providing you with adequate coverage.
Revision according to circumstances – You can change your health insurance plan according to your changing circumstances.
Just like life insurance, you should also re-evaluate your health insurance plan. Updating your insurance cover by assessing your current situation will keep you stress free and will give you the confidence to face future challenges.