How should you assess your life insurance needs at different milestones in life?
As the current fiscal year draws to a close, we all focus on reviewing our tax-saving investments. It’s important to understand that, in addition to being a powerful component of last-minute financial planning, life insurance plays a pivotal role in ensuring its stability and peace of mind for the loved ones left behind. Whether you are a seasoned player or a novice in terms of financial decisioning, the last-minute purchase of life insurance should be based on values beyond tax-saving aspects, such as the optimal product, player, and cover from a long-term perspective.
Let us understand how you should assess the said needs at each milestone in your life:
Contrary to common perceptions on the purpose of life insurance at this stage, there are clear values in life insurance, be it proving mental peace to parents by covering hefty education loans or expenses spent on you if something unexpected and grave happens to you. Plus, starting early means you can buy a policy at lower, budget-friendly premiums.
As you start your career, there are the added responsibilities of managing expenses in addition to securing future plans that depend on your income. With the benefit of lower premiums at this age, life insurance works as an ideal solution to ensure peace of mind for you and your family, in addition to ensuring financial protection for the same.
The milestone of Marriage brings in the excitement of sharing dreams and responsibilities. Life insurance allows you to focus on building a life together without worrying about unforeseen events by ensuring financial security for your spouse. Review your term life cover at this stage — You might need a bigger term life cover, buy an add-on for critical illnesses or accidents, buy a
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