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Changing Life Insurance Needs at Every Stage of Life

  12/27/21 9:47 AM

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  12/27/21 9:47 AM   |

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Life insurance is a critical part of your financial plan. But while you are secured knowing that your life insurance policy will be there to fulfil your monetary requirements and take care of your family, you should still periodically re-examine your insurance needs. As a wise investor, it is advisable to reassess your insurance requirements timely, especially at certain life stages.

Your life is marked by important milestones. College graduation, entering the 30s, marriage, first home purchase, having a child and retirement. As you move from one life stage to another, your monetary requirements, goals, expectations, family needs, etc., change.

To smoothly sail through all stages of life, it is imperative that you invest in a security safety net and consistently uprise the policy to align it with your life stages.

Life insurance plans at different stages of life

  • Young, single and unmarried: Typically, people between ages 20-28 fall in this category. When you are young and unmarried, your life is sorted. You are carefree with no family responsibilities. This is a great time to invest in an online term plan that comes at highly affordable premiums.

Further, at this life stage, even a small insurance sum assured is sufficient. However, the sum you choose should be enough to sustain your parents’ standard of living. Remember, they are ageing with time, so their medical needs will also need to be fulfilled with the insurance sum. 

  • Newly married with increasing responsibilities: This is the age bar of 25-30 years. Once you surpass your single years and get married, you begin a new phase of your life. Now, you have another person’s responsibility, and you must safeguard their future. Hence, your term plan should be revised to increase the sum assured.

Alternatively, you can also choose to buy a new term plan for your spouse. But in both cases, the sum you choose should be enough to cater to the financial needs of your family and also help them sustain their living standard in your absence. Many term plans allow you to enhance your existing policy with add-ons and riders as well as with a top-up sum assured facility. 

Edelweiss Life Insurance Zindagi Plus plan offers Better Half benefit wherein you can cover your spouse in the same plan. Also, with top-up benefits, you can seamlessly increase your coverage.

  • Becoming a parent and growing family needs: This is usually the age between 28-35 years. Your monetary responsibilities sharply increase with the birth of a baby. Your child is completely dependent on you for all of their needs. Hence, you need to adapt your term policy or buy a new plan to adequately sustain your new and growing family requirements.

The term insurance sum should be sufficient to cover your kid’s education, clothing, living expenses, etc. until they are capable of providing for themselves. Ideally, your term insurance sum should also be enough to pay off all financial debts in case of your unfortunate death. 

  • Mid-life duties and responsibilities: The age between 30 and 40 is generally mid-life. This is the time when your financial responsibilities are consistently rising. Your children are growing up; their education is getting expensive, your medical bills are high, your personal loan or house loan is pending and more. As a result, your insurance needs in this stage are very high, considering the number of dependents.

Therefore, you need to revisit your insurance cover so that it sufficiently accounts for the living expenses of your family, ageing parents, children’s education, outstanding liabilities and more. 

  • Mid-fifties and the impending old age: This are the ages beyond 50, which are close to retirement. You would probably be at the peak of your career, well-established, managing several employees, etc. Your children would have become nearly independent, and a majority of your liabilities would be paid off.

So, you have an option to reduce your online term plan sum. However, you might have to pay for your child’s marriage expenses soon and your family’s medical needs. So, your cover should be aligned with these requirements.

  • Retirement and the rest of your life: Once you retire, the golden period of your life begins. You might not be working, but you are spending more time with family and have nearly served all your financial responsibilities.

You can afford to minimise your term insurancecover at this stage. But you should not cancel or surrender it. Moreover, your life cover should be large enough to take care of your medical needs, which are going to rise in this stage and even later, owing to a decline in health due to increasing age.

Term insurance plans by Edelweiss Life - Affordable life insurance

Edelweiss LifeTerm Plan – Zindagi Plus provides a life cover inclusive of protection against the current COVID-19 pandemic. In case of your unfortunate death during the policy tenure, your nominee gets an assured death benefit.

In this plan, you can also choose to take an additional cover on your base sum assured for your spouse at a minimum additional cost with the Better Half benefit. You or your spouse can enrol in the policy without any medical tests and with minimum documentation.

Among other term insurance benefits, this policy even gives you an option to pay all your premiums till the age of 60 so that your retirement is peaceful and secure. You have the choice to pay premiums until the end of the policy tenure.

In the Edelweiss Life life insurance plan, you do not have to worry about paying premiums if you are diagnosed with a listed critical illness. Above all, term insurance tax benefits under Section 80(C) and 10(10D) of the Income Tax Act, 1961 are applicable to the Edelweiss Life Term Plan.

Conclusion

As a wise planner, it is good to invest in the best term life insurance policy early in life and adapt the policy as your age progresses.

Edelweiss Life Insurance term plan ensures that the policy is sufficient and efficient to cover the needs of your family.

 

Aastha Mestry - Portfolio Manager 

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time

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