Some of you may have fewer responsibilities as the years pass by and others may land up with few more. Your investments and insurance policies should also be shaped according to your life circumstances. If you can identify with any of the following scenarios, then you must consider increasing your life insurance cover.
A new family member on the wayIf you are going to have a little munchkin added to your family soon, then it’s time that you increase your life insurance cover. With added member, you will have more responsibilities and more people who will be dependent on you financially. More responsibilities call for double the security of what you already have. So, for those of you who are planning a child, you must talk to your insurance agent to increase your insurance cover.
Bought a new nestIf you have recently purchased a new house with a partial or complete home loan, then you must undoubtedly increase your insurance cover. Higher debt leaves your dependent family members more vulnerable to financial problems in the event of your untimely death. By increasing your financial cover, you will be providing more financial security to your family.
Your dependents need more from youAre your children insistent on going aboard for studies? Or do they need more financial support for healthcare? Whatever may be the reason you must increase your life insurance cover so that they don’t suffer financially in your absence.
You are planning your willIf you are planning on transferring your wealth to your loved ones, then you might want to increase your life cover. Invest more in policies that give you higher maturity returns. One of the reasons to do so is the tax exemption allowed on insurance returns and premiums. You will not only gain higher returns but will also save up the money you would otherwise lose in taxes. So, if you are wondering what would be the best instrument to transfer your wealth then evaluate increasing your insurance as one of your alternatives.
Increasing insurance cover is always beneficial in the long run. Hence, even if you can’t identify with the above scenarios increasing your insurance cover will only make your finances stronger.
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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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