Why you need to revisit your insurance needs

• Follow

We all go through transitions in work and relationships. Some could be long-anticipated like marriage while others could be sudden such as being diagnosed with a critical illness. All these life transitions call for adjustments to be made not only in our personal but as well as financial lives. Insurance plays a critical role in keeping us prepared for such changes. Therefore, it is always advisable to keep revisiting your insurance needs keeping in view your present and future needs.

Costly healthcare

The cost of hospitalisation owing to coronavirus has shot up significantly depending on the city you live in and the type of hospital you choose. Moreover, being a contagious virus if one family member gets infected, there is a high probability that other members can also catch the virus. In such as scenario it becomes imperative to buy adequate coverage of around Rs 25 lakh especially for those living in tier I cities. If you do not have sufficient cover, it is time to increase the sum insured of your health insurance plans. Likewise, you need to have adequate coverage under term insurance plans, which experts say should be at least 10 times your annual income.

Increased liabilities

With the increase in responsibilities, one needs to enhance the coverage. Hence, after marriage or the addition of a new member to the family, one must increase the insurance coverage. If you already have a family health insurance policy, you can get the child’s name included in it. Parents should also consider increasing or taking a new term plan in line with the increased responsibilities and liabilities such as home loans.

Ladder-up your Cover

After having adequate coverage under the basic health insurance policy, you need to go step-by-step for building your health insurance portfolio. You should also have a critical illness plan which pays the entire sum insured if the person is diagnosed with any of the critical illnesses. One should also consider buying disease-specific plans such as diabetes and cancer plans keeping in mind the medical history of the family.

Most importantly, with healthcare costs rising the need for health coverage has become more critical than ever. So you constantly need to review the health coverage in order to get the maximum protection for yourself and your family.