How to increase your life insurance cover

Change is the only constant in life, which is why it is essential to review our life insurance coverage as circumstances evolve over time. The review is not necessarily required monthly or yearly; instead, we can assess our insurance coverage when we reach certain milestones in our lives. Some of the important life events that can require you to bump your insurance coverage are: When you get married. If your spouse is not working and is financially dependent on you. When you have kids. If your income has increased significantly and your standard of living has gone up (think higher dining bills, overseas vacations). You'd need to ensure your loved ones can maintain this lifestyle in your absence. If you have taken a significant, long-term loan (home loan, education loan, etc.). Often, lenders urge you to buy a life insurance plan along with the loan, known as loan protection plan. But stay away from them as they are expensive, lack flexibility and serve the interests of the loan provider, not yours. How much insurance do you need? It all depends on you. You'll get your answer by asking yourself this question: "How much money will my loved ones need if I am not around?" This question can help you list down your monthly expenses. From grocery to schooling, home loan repayment to lifestyle costs, you'd need to add them all up and mu

This article was originally published on August 22, 2023.