Ask Mint | You should review your life insurance cover every year

Ask Mint | You should review your life insurance cover every year

I am 35 years old, and I have already invested in a life insurance plan. How often should I update my life insurance portfolio?

It is crucial to get a sense of how much life insurance you need, but it is even more important to review your needs with every changing situation and stage 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 all change in a few years.

You must remember that these are variables, and are linked closely to your risk cover. Ideally, you should review your life insurance cover every year and check if any of these variables has changed. For example, if you had one child when you took a policy but now have another, you may have to rework the numbers and take 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 eventualities of life.

I am a 40-year-old married woman with two children. Now that my children have grown up, I have sufficient time and want to take up a career in the insurance industry, with flexible timings. Could you suggest some options?

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 a financial adviser is an interesting option that all insurance companies offer. The industry has seen a rise in the number of women who want financial independence and want a rewarding career with flexible timings so that they don’t neglect their families.

Insurance companies have made it worthwhile for women to be associated with the sector. If you are educated, have good communication and social skills, you can apply to any life insurance company. You will, of course, need to undergo the pre-licensing training and clear the regulatory pre-licensing exam. Once you do that, you are all set for a great career in this sunrise industry.

Readers are welcome to write in with their queries to The questions will be answered by senior executives from leading insurance firms.

This week’s expert is Rajesh Relan, managing director, MetLife.