Is Your Life Insurance Coverage Keeping Pace With Your Annual Pay Hikes?

The issue then arises whether something has been done to protect this enhanced standard of living of the family. This is where adequate life insurance coverage comes into the picture. But why, you might ask?

Life insurance policies provide for family’s regular expenses as well as major future needs such as child’s higher education, in the absence of the policyholder. So, when your family’s regular expenses go up, you need to protect its living standards by having adequate life insurance.

Consequently, this means buying adequate life insurance if you don’t have a life insurance cover at all. In case you have life insurance coverage through a life insurance policy, you need to increase it.

To have adequate life insurance, you need to buy the right type of life insurance. If you want the highest possible coverage at most affordable premiums, you need to opt for life insurance coverage with term life insurance and buy a term plan.

If you already have life insurance coverage, you could opt for an online term plan since its premiums would be even lower than a term plan bought offline. Also, by doing so, you can ensure that you continue to have enough disposable savings to carry on with your regular investments to save ample amounts for future needs.

Just in case, you don’t have life insurance coverage yet, you can make a choice between buying a term plan offline and an online term plan. In such cases, while scouting for the best term plan for yourself, among other things, look for a term plan that allows you to increase your life insurance amount during the term. This would be especially useful after important life events when your financial responsibilities rise, be it a home purchase, marriage or birth of a child. In the future, just in case you don’t have such a term plan, you will then need to buy a fresh term plan.

Apart from the premium and the facility for enhancing life insurance coverage, to get the best term insurance, you need to also to find out the number of years you need to pay the premium. This is regardless of the fact whether you are buying a term plan for the first time or enhancing existing life insurance coverage. Needless to say, the period of coverage of the term plan needs to ideally cover your work life since you would want life insurance coverage until you have saved enough for your family.

It is quite clear that a term plan is your family’s best friend when it is financially most vulnerable. You can never afford to make compromises when it comes to financial protection for your family. This means everything else can wait after a pay hike, including the party, till you have given your family adequate term life insurance protection.

Disclaimer: Life Insurance coverage is available in this product & riders. Axis Max Life Smart Total Elite Protection (STEP) Term Plan is a Non-Linked Non-Participating Individual Pure Risk Life Insurance Plan (UIN: 104N125V07). It provides only a death benefit and no maturity or surrender benefit. For more details on the risk factors, terms and conditions, please read the product sales brochure carefully before concluding a sale. For further details on Axis Max Life Comprehensive Accidental Death Benefit, UIN -104B027V03, please refer to the brochure. For further details on Axis Max Life Waiver of Premium Plus, UIN: 104B029V03, please refer to the brochure.