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Buying life cover is one of the most important decisions of an individual’s life. In the Indian market, companies provide two kinds of covers namely term plans and non-term plans. The second type of plans are also known as money-back policies or endowment plans.
While most experts recommend acquiring term plans due to their affordability and higher coverage, buying non-term plans must also be considered. Deciding the kind of cover to acquire is only the first question. The larger decision is determining how much life insurance is needed to cover all kinds of possibilities. Most people have the tendency to acquire lesser coverage to save premium costs. Continuously reviewing the coverage and making necessary modifications when major events happen in your life is crucial.
When you first start working, you have no liabilities and responsibilities, which means lower life insurance is sufficient. But when you marry, there is an instant increase in your responsibilities and you need provision for the adequate care of your spouse. At this stage, reassessing the insurance coverage need and increasing it to ensure that your partner receives sufficient money to live comfortably in case of any eventuality is important.
The birth of a baby is one of the most important events that occur in the life of any individual. Providing a comfortable and good upbringing to the child is your responsibility. Securing his or her future by making adequate provisions for their education and marriage later in life through insurance plans must be considered.
One of the biggest debt burdens you will assume in your life is purchasing your dream house. Having procured home mortgage to purchase your home, it is now your responsibility to ensure it remains with your loved ones in case of any untoward incident. Most lending institutions now insist on insurance coverage to protect such mortgage loans. In case something happens to you, it is important to prevent your family being harassed by your lenders and in a worst case scenario; being evicted from the house. This is when you need to reassess your insurance coverage and increase it to meet any such eventuality.
Having understood some instances when increasing the coverage is crucial the important question remains on how much to increase. Additionally, you need to decide between term life insurance and non-term plans. Finding answers to such questions is no easy task. A recommended and much used option is for people to take the help of comparative websites to make an intelligent comparison among different policy offerings to make the right choice.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.
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