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Ask Mint | Review your life cover every year

Ask Mint | Review your life cover every year
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First Published: Sun, Sep 07 2008. 11 01 PM IST

Updated: Mon, Sep 08 2008. 12 14 PM IST
The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in the business, Mint features a Q&A on insurance every Monday.
I am 35 and have invested in a life insurance plan. How often should I update my life insurance portfolio?
It’s crucial to get a sense of how much life insurance you need, but even more important to review your needs with every changing situation in life.
Assumptions concerning the financial needs of your family, the state of your health, anticipated inflation rate and the financial performance of your other investments may change a few years later. You must remember that these are variables closely linked to your risk cover.
Ideally, you should review your life insurance cover every year and check whether any of these variables has changed.
For example, if you had one child when you took an insurance policy but now have another, you may have to rework the numbers and take an additional cover.
Hence, you need to constantly review your insurance needs on a regular basis. Else you could be under-covered or ill prepared for the future.
I am a 40-year-old married woman with two children. Now, with my children grown up, I have sufficient time and I want to take up a career with flexible timing and be financially independent.
It is never too late to start a new career, provided you are ready to learn and have the motivation to turn it into a meaningful career.
Being an insurance agent or a financial adviser is an interesting option all insurance companies offer. The industry has seen a rise in the number of women who want financial independence and a rewarding career with flexible timings so they don’t neglect their families.
Insurance companies today have not only added the much-needed panache to the sector but have proved it worthwhile for women to be associated with the sector.
If you are educated, have good communication and interpersonal skills, you can apply to any life insurance company.
You will need to clear the 100-hour training by the Insurance Regulatory and Development Authority and then you will be set for a great career move in this sunrise industry.
Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Rajesh Relan,managing director, MetLife.
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First Published: Sun, Sep 07 2008. 11 01 PM IST