Let’s review insurance coverage at the start of 2021!

 It’s a new year and the time for fresh beginnings and exciting life resolutions. While most of us do focus on making resolutions that revolve around our health and personal lives, we often neglect to consider that our finances too need adequate attention. In particular, we need to review the insurance coverage that we have. Insurance plans help protect our finances and so, it naturally follows that a good insurance portfolio equals good financial health.

If you are wondering how and where to begin reviewing your insurance coverage, this article is just for you. Read on to explore a few insurance plans that should ideally form a part of your coverage portfolio. Stick around till the end for we have also listed a few tips on when to review your coverage.

If you are looking to build or improve your insurance portfolio, here are some of the main plans you should consider this year –

 Integrated Shield Plan

Even if you are already covered under MediShield Life, you might want to now revise the protection you enjoy. Consider upgrading your health insurance by opting in for an Integrated Shield Plan. A good Integrated Shield Plan should offer you coverage for pre- and post-hospitalisation expenses as well as a range of value-added benefits such as concierge service and cashless transactions. Leading insurers in the country often reward policyholders for claim-free years by offering them premium discounts.

·         Life Insurance

Life insurance is one of the most important forms of coverage you will ever have. Your life insurance policy secures your loved ones should something unfortunate befall you. The coverage gets paid out for death, total and permanent disability and terminal illness. When buying life insurance, you can choose between whole life insurance and term life insurance. While whole life insurance protects you for the entirety of your lifespan, term life insurance protects you for a period preselected by you. Each of these two forms of life insurance has its own unique benefits; do explore the options and select the one that suits your needs and budget. Remember that you may also choose to add a critical illness rider to your life insurance policy.

·         Critical Illness Insurance

Critical illness insurance pays you a lump sum amount of the entire sum assured if you are diagnosed with any of the illnesses covered in the plan. As diseases such as cancer are on the rise these days, the importance of having critical illness insurance should never be underestimated. The payout you receive can be used for any expenses you incur such as your home rent, the cost of keeping domestic help to care for you, and co-pay in your health insurance.

·         Personal Accident Insurance

A slip on the stairs or a road mishap – accidents can occur anytime. Sometimes, accidents can leave you with injuries that are serious or even permanent in nature. Having personal accident insurance will ensure that you are safeguarded from the heavy expenses that might follow an accident. Look for a good personal accident insurance plan that covers high risk activities, animal and insect bites, and infectious diseases too.

·         Insurance for savings and investments

Insurance plans are not just for protection; they also help you achieve your saving goals. Once you have adequate life and critical illness protection, look to explore other products from your insurer that can help you save and/or invest for your financial goals and life milestones. In this regard, you may explore insurance savings plans, investment-linked plans (ILPs), endowment plans, and even retirement savings plans. Each of these insurance products come with unique features that can work for you – make sure to speak to a financial consultant to figure out which one could suit your needs, budget, and goals the best.

When should you review your insurance coverage?

The new year is a great time to begin afresh and review your insurance coverage. But there are other times when you should also consider reviewing the coverage you have to stay up-to-date. Here are a few scenarios of when you should ideally be reviewing the insurance coverage you have –

·         When you plan to get married – At this juncture, you want to ensure that you and your spouse are adequately covered should anything unfortunate happen to either of you.

·         When you are about to start a family – You would want to look into getting maternity insurance so that mother and baby get the best protection against unforeseen circumstances.

·         When deciding to buy/change your home – Buying a home is a big investment. You would need to secure your home loan with proper mortgage insurance or a term life plan.