Increase insurance cover with rise in income and change in lifestyle
I am 35 years old. Five years back, I had purchased a term insurance plan of Rs 50 lakh for 30 years. At that time, it was 10 times my annual income. But now my salary has increased. Can I increase my insurance? Can I add to my existing policy? If I change my insurance company, will I lose out any benefits? – Ajitesh KumarFirstly, based on the information provided, you will be eligible for an increase in the insurance cover. As a thumb rule, an individual should have a life cover of 10 to 15 times the annual income. This will ensure the sustenance of lifestyle in case of any eventuality. In fact, one should increase the insurance cover with every increase in income and change in lifestyle. The amount of life insurance coverage you need will also depend on other factors such as the number of dependents, children’s aspirations, financial goals, liabilities and affordability.