Different Life Stages Demand Different Life Insurance Coverage

Life always throws different types of financial challenges because of increasing inflation, fast life style and trend of nuclear families. All these challenges can be resolved by life insurance only. Remember that financial plan needs to sync with stages of life and the requirements which are certain to a specific life stages. Need of this insurance changes as person enter a new life stage and the coverage of same amount may not be enough. It means policyholders need to reevaluate their needs for term insurance coverage.

Below are various life stages that demand a revision in coverage:

Single with dependent Parents

If a person is single and have financially dependent parents, then buy this insurance type before planning for a wedding. Do not compare yourself with other singles whose parents are not financially dependent. Parents should financially suffer if you meet with an accident. So, purchase enough life insurance coverage before it’s too late.

Newlywed

Life insurance needs increases once you are married, so hold adequate coverage to protect your spouse financially. It is the right time to invest in this coverage as soon as you get engaged.

Becoming Parents

When you are planning to become a parent, then you require more life insurance coverage to protect future of your children. Do not forget that you are solely responsible for the financial well-being of your children. When pregnancy of your wife is confirmed, just re-evaluate your needs for life insurance and show your child that you are a responsible parent.

Buy a new house

Outstanding liability goes up when you purchase a new home. If any eventuality happens with you, then financial burden falls on your loved ones. Life insurance covers loan, property maintenance as well as property taxes to be paid in order to offer financial comfort for policyholder’s family.

New debt

All debts such as personal loan and car loan need to be included under a life insurance policy. In case insured person apply for a loan, then he or she need to extend the coverage amount. It is necessary to leave asset for your family members and not loans as liabilities.

Job Promotion

Promotion in job leads to increased income and paves the path to a better standard of living. So, family members also need this increased payment in order to maintain their new lifestyle when you are not around. So, secure needs of your family by re-evaluating life insurance requirements.

Change in Marital Status

If marital status changes because of demise of your spouse or divorce, then insured needs to review his policy needs. Your family completely depends on you not only emotionally but financially as well. In fact, you also have to make important changes in the nomination of the current insurance in which you have nominated your life partner.

Children education

Life insurance policies play a key role in the life of growing children especially those who are studying abroad for expensive courses like medical, engineering, MBA etc.

Post Retirement

You do not have any earning sources after retirement. But, if you own policies which can be closed on your retirement, then there will not be any financial loss for the family in case of any eventuality happens to you.