Here Are 10 Reasons Why Life Insurance is a Smart Investment

Each year brings new responsibilities as we get older.

Each new year brings with it a host of goals and promises. You will also encounter many surprises and challenges along the way.

Insurance cover (both health and life) is essential to help you get through any kind of mishap or challenge. Even though we may be covered, it is always a good idea to review our insurance policies each year in order to identify any changes.

We will therefore discuss checklists and the most important points to keep in mind.

Let’s begin!

Checklist for Life Insurance

It is important to assess our life circumstances in order to reach the goal of having robust insurance coverage. This requires us to assess whether or not there has been any major events in the year ahead.

These events could include the birth of a baby, marriage, promotions, etc. All these events require us to review our life insurance packages. Let’s take a look at the following key scenarios:

1. A new family member

You need to make sure that you have insurance coverage for the child or the person you’re marrying.

After marriage, you might consider special policies such as the Joint Life Policy. There are many policies available to help you if your child is born. Jeevan Tarun, LIC’s Money Back policy, became well-known after its launch.

It is possible to compare policies from different companies, and finally find the one that best suits our needs.

2. Child Graduating (Your burden decreases)

Sometimes, our spouse and children are completely dependent on us.

These times call for insurance coverage that is sufficient to cover the family’s needs in the event of an emergency.

It is okay to reduce our life insurance when our children have finished their education and are earning a living.

Similar situations apply when we have paid off our car loan EMIs or home loan. These are times when our responsibilities begin to decrease and we should reduce our insurance coverage in the future.

3. Death of a family member

We need to recalculate our insurance coverage in case of death. It is important to include dependent family members in your entire insurance policy.

We should verify that the total premium should be lower than last year’s because there are fewer people to cover.

A life insurance policy is designed to ensure that our loved ones have financial support in the event of an unfortunate event. Don’t wait! This should be checked on priority. If necessary, rejig your cover for the financial year.

Health Insurance Checklist

Like life insurance, insurance for health is important. In some cases, we may need to adjust the coverage to meet our current needs.

It is therefore important to take a hard look at your health insurance needs.

Let’s discuss some important parameters you should be aware of.

1. Group Health Insurance: Alteration

Most of us rely upon employer-provided insurance plans for our health insurance. Therefore, when we move jobs, our health insurance coverage also changes.

However, it is a good idea to also cover yourself separately. Because there are very few companies or institutions that may not offer adequate medical coverage, it is important to protect yourself separately.

We need to make sure that we check all clauses when we switch jobs or get a new policy for our health insurance.

These clauses could include co-payment of claims, limits on specific illnesses, and so forth. Only after we have made sure that we understand the policy completely, should we choose one or make any necessary changes.

2. Expected Hospitalization of a Family Member

You should make any necessary adjustments if a relative is expected to be hospitalized in the next year for either a minor or major operation.

Premiums for health insurance policies are higher when they are renewed, but the premiums will be higher. It is better to add your existing plan and make sure all family members are covered. A family floater policy.

2. Changes in the Family’s Members

We will need to adjust our policies in order to accommodate the births and deaths of family members. These changes will require us to revise the premium.

These are the basics you need to know about health insurance.

As Groww has already stated, both life insurance and health insurance are essential. Both need to be reviewed on a regular basis in order not to regret it later.


It is crucial to review your insurance coverage every year. Only then can you get the best protection for yourself and your family.

This will make it easier to manage the process. We need to review our policies, ensure that we don’t overpay for unnecessary policies, and finally, stick with those policies which are most important to us.

Disclaimer. The views expressed here are those of the author, and not Lifestatus.

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