Topic 1: Increase Your Life And Health Cover Amounts
Has your career graph risen vertically in the last few years? Congratulations! We are sure that your rising income has brought with it big changes in your lifestyle too. With your elevation, you and your family may have upgraded to a three-bedroom apartment, your children may have moved to international schools and you may have taken on new loans to fund a vacation or a fancy SUV that you have always dreamt of.
But all this means that your term-insurance policy badly needs an upgrade, too. The insurance cover you took five years ago may have been sufficient to cover your dependents' expenses at that time. But to make sure that your dependents don't suffer a dramatic climb-down if something happens to you, you will need a larger sum assured.
While estimating your new life cover, don't go by simplistic thumb rules such as 'ten times your annual income'. Instead, ask your adviser that scientifically calculate life cover based on your family's living expenses, inflation, the likely number of years for which you would like to support your dependents, outstanding loans and any other critical goals you may like to take care of. A Rs 1 crore cover isn't over-the-top any longer!
With lifestyle ailments on the rise, don't forget to top up the health cover for yourself and your family, too. Even if official inflation rates have fallen to 5 per cent, factor in a 10 per cent inflation rate on your healthcare costs while topping up.
Health insurance is one financial product where skimping on costs (premium) can prove injurious to your wealth. As a rule, give a greater weightage to the quantum of sum assured and the breadth of health conditions covered when choosing a plan. Apart from this, screen the product for a low waiting period on pre-existing diseases, a wide network of hospitals where cashless treatment is offered and liberal sub-limits on room rent. Skipping the medical test isn't necessarily a good thing as it can lead to disputed claims later.
But all this means that your term-insurance policy badly needs an upgrade, too. The insurance cover you took five years ago may have been sufficient to cover your dependents' expenses at that time. But to make sure that your dependents don't suffer a dramatic climb-down if something happens to you, you will need a larger sum assured.
While estimating your new life cover, don't go by simplistic thumb rules such as 'ten times your annual income'. Instead, ask your adviser that scientifically calculate life cover based on your family's living expenses, inflation, the likely number of years for which you would like to support your dependents, outstanding loans and any other critical goals you may like to take care of. A Rs 1 crore cover isn't over-the-top any longer!
With lifestyle ailments on the rise, don't forget to top up the health cover for yourself and your family, too. Even if official inflation rates have fallen to 5 per cent, factor in a 10 per cent inflation rate on your healthcare costs while topping up.
Health insurance is one financial product where skimping on costs (premium) can prove injurious to your wealth. As a rule, give a greater weightage to the quantum of sum assured and the breadth of health conditions covered when choosing a plan. Apart from this, screen the product for a low waiting period on pre-existing diseases, a wide network of hospitals where cashless treatment is offered and liberal sub-limits on room rent. Skipping the medical test isn't necessarily a good thing as it can lead to disputed claims later.