Life insurances serve as a safety net, that provide financial protection to loved ones in case of an unexpected event. However, only securing it is not enough, reviewing the plan periodically is important to ensure the coverage continues.
If one regularly reviews the life insurance plan, it helps to ensure that it meets current or upcoming financial goals as well as aligns with the family’s needs. It is also important to keep major life events, such as weddings, childbirth, or home purchases in mind while reviewing.
The major life events that impact insurance plans include weddings, childbirth, homeownership, job changes and retirement.
Major life events that call for insurance review are marriage or divorce, childbirth or adoption, starting a business and health issues.
The key parameters one needs to keep in mind while reviewing the insurance plan are ensuring the sum assured is sufficient to cover all liabilities and choosing insurers with a strong claim settlement ratio.
