Take liabilities into accountYour liabilities and assets are the diets for your healthy financial future. Calculate all the debt that you are liable to pay in the next few years. If you are going to step out of the workforce with debt, then it is essential to get life insurance with higher cover and the one that pays out some amount at regular intervals.
Calculate inflationIf you are getting life insurance with investment as your goal, then you must calculate the inflation rates and get the cover that will be an adequate amount to sustain in the future. If your life insurance involves riders such as insurance for critical illnesses and disability then consider inflation on health care expenses while deciding on your insurance coverage.
Consider unforeseen costsWhen saving or getting insurance most people to consider the most apparent expenditures that could occur in the future. However, the best way to secure your-self, against unforeseen costs is to consider the not so obvious expenses as well. You may also want to consider inflation for these expenses.
Consider your health check-up routine and medical conditionsIf you have any existing medical conditions that need health checkups regularly, then you must add riders to your life insurance cover and set a higher coverage that covers your medical costs. While doing this, inflate your existing medical costs to equip yourself financially when the healthcare costs go up.
There’s no one size fits all solution when it comes to life insurance coverage. Everyone has different priorities and different income levels. However, while deciding the insurance cover, don’t forget to consider all the above factors. Don’t hesitate to seek professional help if you are not able to figure it out on your own to avoid landing up with inadequate funds and security in times of emergencies.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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