Is Your Life Cover Keeping Pace With Your Pay Hikes?

It’s Saturday evening and Ritwik’s mood is just right for celebration for his recent pay hike. Friends are set to arrive at any moment and he has kept everything ready – the food, beverages, and music. He then asked his roommate “Have I missed something?” His roommate then cross-checked and replied, “No, it is perfect!

Even though Ritwtik arranged everything there is one important thing that he missed out and that is

Getting higher life covers before pay hike party

The missing item is enhanced life cover. A pay hike typically translates into enhanced household expenditure. Apart from upgrades of gadgets and other items, families typically enhance their regular expenses after a pay hike. In short, a pay hike translates into a higher standard of living thus increasing expenses.

Why choose a term plan?

Your family’s standard of living has improved but have you done something to secure this ongoing expenses in your absence? This is where adequate life cover comes into the picture.

Term plans provide for the family’s regular expenses as well as major future goals such as funding the child’s education, in the absence of the policyholder. So, when your family’s regular expenses go up, you need to protect its living standards by having adequate life cover.

Consequently, this means buying adequate life insurance if you don’t have life insurance cover at all. In case you have life insurance coverage through a life insurance policy, you need to increase it.

If you already have life insurance coverage, you could opt for an online term plan since its premiums would be even lower than a term plan bought offline. Also, by doing so, you can ensure that you continue to have enough disposable savings to carry on with your regular investments to save ample amounts for future needs.

The top-up benefit

The top-up benefit in Edelweiss Tokio Life – Zindagi Plus ensures that your family combats inflation in your absence.

Under this benefit, your life cover increases systematically as per your chosen rate. The premium will also increase accordingly. This especially suits salaried employees whose income will increase in the future as their career grows. A big advantage if you choose the Top-up Benefit is that if you suffer from any medical condition in the future such as diabetes, the policy won’t stop, no matter what. Thus, it shields you from future price rise and uncertainties. You also get to avoid the tedious formalities of buying a new policy again and again later in life.

It is quite clear that a term plan is your family’s best friend when it is financially most vulnerable. You can never afford to make compromises when it comes to financial protection for your family. This means everything else can wait after a pay hike, including the party, until you have given your family adequate term life insurance protection.

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.