How Insurance Needs Change for Every Life Stage
I am 30 years old and just married, so do I need a term insurance plan? You are faced with different priorities at every stage in your life. You need to change with it, in all aspects, whether it is career goals or finances, especially insurance. For instance, a cover that is sufficient when you are 25 will never hold good when you are 60. So, it is important to consider what insurance needs you would have as your life progresses.
What Do I Need?
When you begin your career and acquire financial assets, you need to build a strong foundation. In an event of injury, death or disability, your family needs financial security as well. So, it is imperative to always protect your most valuable assets – Income and Life.
1. Would Income Disability Insurance be Sufficient?
When your employer provides disability insurance, you must ensure that you are adequately covered. In most cases, the cover is insufficient and might also end if you happen to leave your job. With the volatile job market, you need something more permanent. An alternative would be to go in for an individual plan, apart from what the employer provides.
2. What could Short-Term Insurance do for me?
Short-term insurance is the best policy you could start with when you are young. It protects the financial foundation you lay. Later, it can be converted to permanent insurance. Term insurance plans offer you the option of inexpensive coverage when you have major financial commitments, such as home loans.
3. Growing Assets and Middle Age
Once you are financially stable, you can go in for whole life covers and also include add-ons to your term insurance policy. Financial growth of assets requires constant attention. Insurance can be a valuable investment to ensure that your financial goals are met. Your family might depend on the salaries of both you and your spouse to build your child’s college funds, buy a house, or even setup a retirement fund. At this stage life, you might want to consider converting your term insurance plan to a permanent one.
This will help accumulate savings and also provide tax free benefits for your family in case of your unforeseen demise or disability.
If you and your spouse survive your policy’s tenure, your maturity benefit will also give you a major source of income. This will take care for your medical needs, retirement plans and goals, lifestyle maintenance and much more.
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| Term Plans (advisorkhoj) |
I am 30 years old and just married, so do I need a term insurance plan? You are faced with different priorities at every stage in your life. You need to change with it, in all aspects, whether it is career goals or finances, especially insurance. For instance, a cover that is sufficient when you are 25 will never hold good when you are 60. So, it is important to consider what insurance needs you would have as your life progresses.
What Do I Need?
When you begin your career and acquire financial assets, you need to build a strong foundation. In an event of injury, death or disability, your family needs financial security as well. So, it is imperative to always protect your most valuable assets – Income and Life.
1. Would Income Disability Insurance be Sufficient?
When your employer provides disability insurance, you must ensure that you are adequately covered. In most cases, the cover is insufficient and might also end if you happen to leave your job. With the volatile job market, you need something more permanent. An alternative would be to go in for an individual plan, apart from what the employer provides.
2. What could Short-Term Insurance do for me?
Short-term insurance is the best policy you could start with when you are young. It protects the financial foundation you lay. Later, it can be converted to permanent insurance. Term insurance plans offer you the option of inexpensive coverage when you have major financial commitments, such as home loans.
3. Growing Assets and Middle Age
Once you are financially stable, you can go in for whole life covers and also include add-ons to your term insurance policy. Financial growth of assets requires constant attention. Insurance can be a valuable investment to ensure that your financial goals are met. Your family might depend on the salaries of both you and your spouse to build your child’s college funds, buy a house, or even setup a retirement fund. At this stage life, you might want to consider converting your term insurance plan to a permanent one.
This will help accumulate savings and also provide tax free benefits for your family in case of your unforeseen demise or disability.
If you and your spouse survive your policy’s tenure, your maturity benefit will also give you a major source of income. This will take care for your medical needs, retirement plans and goals, lifestyle maintenance and much more.
