Buying insurance is an important step in every individual’s life because we all have a responsibility towards our loved ones and by buying insurance; you secure your family’s financial future. Life is unpredictable; you can never be certain of how the future will turn out to be. It is crucial to act today and secure your family’s financial future while you can. Life insurance is a shield; protecting and looking after your loved ones in your absence. However, this process doesn’t end with you purchasing a life insurance. After every major change in your life, you must evaluate your insurance portfolio and make the changes you deem fit. Following are 5 life events post which you should evaluate your insurance portfolio:
1. Change of Employment:
It is important to remember that nothing in life is constant; change is the only aspect of life that is constant. Your first employment might last for a short or a long duration; you might get promoted or you could also get fired. Both of these would result in a change in your annual income. Subsequently, this would lead to changes in your lifestyle. Based on all of these factors, you must make appropriate changes to your insurance portfolio.
2. Increased Tax Burden:
There is great joy when you get a promotion and hike in your annual income but along with this there is the stress of paying additional taxes. This is where insurance policies become even more attractive; they offer tax exemptions and this, in turn, reduces your tax burden.
Marriage is an important milestone in every individual’s life. Among various changes associated with a marriage are – changes in your lifestyle and additional people depending on you. You have to take into account your partner’s lifestyle and at the same time make the suitable changes to your insurance portfolio, making sure that the sum assured that your family would receive in the unfortunate circumstance of your demise is enough to sustain their lifestyle.
4. Purchasing a Home:
It is everyone individual’s dream to have a place which they can call their own. However, purchasing your own home is quite difficult these days with real estate prices rising every day. Most people usually take a home loan to fulfill their dream. At the same time, you must make sure that the life cover provided by your insurance policy is large enough to cover your loan so that your family doesn’t have to worry about collecting money to pay the bank in case you’re no longer around.
Becoming a parent is a wonderful experience; parenthood brings great joy and strengthens the bonds between two individuals. However, becoming a parent comes with the additional responsibility of taking care of another individual. You have to plan for your child’s education and needs. All of this would require you to make changes to insurance portfolio, so that your child’s future is financially secure in case anything was to happen to you.
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