How Life Changes Affect Your Insurance Coverage Needs

Life is a journey filled with exciting milestones and unexpected twists. Each significant event can impact your insurance needs, making it crucial to review your coverage regularly.

With each of life’s changes, comes a profound impact on your insurance needs. How? Read along to understand. 

 

Milestones and Insurance

Here are some of the life events that might require you to take a step back and review your policies-

● Marriage 

● Growing the family

● Loans and mortgages 

● Planning Retirement 

● Major health events 

● Children growing up 

● Demise of a spouse 

● Divorce 

Let's look into these in detail, shall we? 

1. Tying the knot 

Marriage is a beautiful adventure, and it’s also a great time to re-evaluate your insurance. While it is unthinkable to one day be without your partner, preparing for an untimely, unfortunate event is a gift in times of need. 

Here are a few things you can consider: 

● Updating Beneficiaries: Ensure your spouse is named as the beneficiary on your life insurance policy. 

● Adding a Spouse to Policies: Update your health, auto, and home insurance to include your spouse, providing comprehensive coverage for your new family unit. 

2. Welcoming a baby

Welcoming a new member to the family is joyous and calls for a closer look at your insurance coverage to protect your little one’s future.

You can consider:

● Health Insurance for Newborns: Add your newborn to your health insurance policy or get a rider for added protection. 

● Educational Savings Plans: Start planning for your child’s future education.

3. Loans and mortgagesA home purchase is a major milestone requiring proper insurance to protect your investment.

You can consider: 

● Homeowners Insurance: Make sure you have a comprehensive policy that covers the structure, personal belongings, and liability.

● Mortgage Insurance: Consider this to protect your investment if you have a mortgage.

4. Major health events

A major health event can dramatically alter your insurance needs, making it essential to reassess your coverage.

You can consider: 

● Health Insurance Adjustments: Ensure your health insurance covers ongoing treatment and medication.

● Disability Insurance: Add riders for disability insurance to protect your income if you’re unable to work.

5. Children becoming adults

As children leave the nest, you may need to adjust your insurance policies to reflect this change.  

You can consider: 

● Health Insurance Eligibility: In India, past the age of 25, children become ineligible to be under their parent’s Health Insurance policy, thus, should have their own health insurance coverage.

6. Death of a spouse

If you are going through this unfortunate event, our greatest condolences. Here are some ways to lessen the financial burden during this loss-

You can consider: 

● Claiming Life Insurance Benefits: File a claim to receive the death benefit from your spouse’s life insurance policy.

● Updating Beneficiaries: Update beneficiaries on all your policies.

7. Divorce or Separation

Divorce is a heavy time that requires significant adjustments to your insurance policies to reflect your new circumstances.

You can consider:

● Updating Beneficiaries: Remove your ex-spouse as a beneficiary from your life insurance and other policies.

8. Other Significant Life Changes

Other major life events can also impact your insurance needs, requiring a thorough review. 

● Changes in Income 

● Retirement Planning 

● Starting a Business/ New Job 

● Executing a Will 

● Change of beneficiary 

● Financial shifts 

● Asset Accumulation 

Conclusion

Life is full of changes, each bringing unique insurance considerations. However, you need not stand alone in these challenging times. 

From the claim settlement of a Health insurance claim or life insurance claim to any insurance claim-related issues or unfortunate event of insurance rejection-related issues, feel free to contact subject matter experts for claim rejection services.