5 min read
Life is constantly changing every minute. And so do its needs. It’s difficult to predict what might happen the next moment. So it is obviously difficult to prepare yourself way in advance for life’s uncertainties. While term insurance does provide protection, it may not be able to cover all of what life throws at you. This is when increasing its coverage becomes necessary.
We all know that buying a term insurance plan is one of the wisest decisions to make in a lifetime. It helps prepare you for life’s eventualities – today when you are alive and tomorrow in your absence too. However, can term insurance really cover all of life’s uncertainties such that you would never have anything else to worry about for the rest of your life and thereafter?
Perhaps not. This is because life itself is changing every single minute and so does everything else associated with it. Our needs grow with time and so do our uncertainties. With changing times and situations, your term insurance policy purchased in the past may also become obsolete in a way. In some cases, it may not be able to provide sufficient coverage for increasing cost needs and in some others, the insurance plan may not be equipped to handle an unfortunate mishap.
Does that mean that your term insurance plan is not useful anymore? No, it simply means that it’s time to increase the cover option of your policy. Let’s read more about what it means and how it works.
As discussed earlier, your term life insurance policy is not going to be adequate to cover all your financial needs and life’s eventualities until the end of your lifetime. This is why it’s important to consider increasing the scope of coverage of your plan. Here are a few options that you can consider in this regard:
All you need to do is simply buy term insurance with an increasing term coverage option. In this case, the sum assured continues to gradually increase by a predetermined sum every year until the end of the term. This would mean that all your costs can be well taken care of. Besides, the policyholder’s age and health status do not pose restrictions under this cover, unlike in the case of other insurance plans.
Every term insurance policy offers a choice to the policyholder to renew the plan or extend its coverage upon completion of the policy term. However, both these scenarios largely depend on the age of the policyholder and also their state of health at the time of renewal. If either of the two situations aren’t favorable to the insurer, the renewal application may be rejected.
However, with the increasing term insurance coverage option, this does not seem to be the issue. To help you make an informed decision, let’s look at some more benefits of this cover below:
There are several advantages of this benefit which explains why it is preferred by most policy buyers over other term insurance plans. Here are just some of the benefits of this cover:
It is plainly evident from the blog that in order to increase the coverage of your term insurance plan with changing times and financial needs, the best option to go for is the one with the increasing cover benefit.
There is no hassle involved in going over the entire tedious documentation process while buying a new policy, nor is there any fear of rejection as you grow older. Moreover, the plan provides a rather simple claiming process with a steady premium amount payable across the entire term of the plan.
Remember that you are buying term insurance in order to protect the financial interests of yourself and those of your family in your absence. Hence, the coverage provided under the plan should always be adequate to meet the growing needs of your loved ones when you are not there. Bearing this in mind, the increasing cover option under term insurance seems to be a fair deal.
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