ETM_2013_8!26!34-Insur at Each Age

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8/13/2019 ETM_2013_8!26!34-Insur at Each Age

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Health insuranceThis is a critical period since you are likely to start facing medicalproblems. To ensure you retain the health cover and critical illness

rider/cover, pay the premium so that the policy does not lapse. If it

does, you'll have to pay a high premium, take medical tests, and

pre-existing diseases will be covered only after the waiting period.

Continue with your existing covers for accident&disability, as well as property

insurance. Raise the latter toaccountfor inflation or after a rise in contents.

Health insuranceThis is the most crucial period

expenses are likely to compri

ensure your premiums are pa

`10 lakhANN

Personal accident & disability coversContinue with your existing covers.

COVER (STRUCTURE & CON

`60 lakh

Property insurancDo not end this policy as you n

contents at all times. Review

in contents.

SINGLE & EMPLOYED

MARRIED, WITH KIDS

MIDDLE AGE, OLDER KIDS

MARRIED, NO KIDS

RETIREMEN

Life insuranceDuring these years, you are unlikely to need fresh insurance unless

you take a loan or act as guarantor for your child's education loan.

It will also be the period when you start to cash in on your endow-

ment policies or child plans. So continue with your existing cover.

Life insuranceBy this time, you would have s

be financially independent, m

and debts, would have been p

So when the life cover's term

From the time you start working till retirement, each life

review of your insurance portfolio. While some covers, lik

vehicle and travel abroad, are mandatory, others need to

proactively. Find out the type and quantum of insurance y

Insurancefor eachlifestage

RIJU MEHTA

ACCIDENT COVER

`25 lakh

DISABILITY COVER

`25 lakh

ANNUAL PREMIUM

`1,500

ANNUAL PREMIUM

`1,600

Life insurance

If you have no financial dependants, you don't need to buy a lifecover, but if you support someone or have taken an education loan,

you may need one. The best option would be an online term plan till

retirement. The amount should be 5-6 times your annual salary. If

you are a non-smoker male with a monthly salary of `30,000:

`20 lakhANNUAL PREMIUM

`3,400TERM

30 years

Life insuranceIf your salary has risen to `45,000 (approx 10% a year) and your

spouse is working, you will need to raise your cover. Instead of a

fresh cover, you can also pick a top-up plan, with a lower premium.

If your spouse is 27 years old, non-smoking and employed, with a

salary of `35,000 per month:

If your spouse is non-working, buy a higher cover for yourself.

`4,200TERM

30 years

`3,400TERM

30 years

`4,700TERM

30 years

SPOUSE COVER

`6,500

If your spouse's salary has risen to `55,000 a month (10% a year):

If you want to plan for your kid's education/marriage, buy a child

plan. While it offers a cover and a lump sum on maturity, the premi-

um is high. For your 4-year-old, it will yield `10-14 lakh on maturity.

Life insuranceIf your income is now `75,000 (approx 10% a year), you have two

kids, aged 6 and 4, and have taken a `30 lakh home loan, a car loan

of `4 lakh, your cover should be:

`9,500TERM

25 years

`60,000TERM

15 years

`6,500TERM

30 years

Property insuranceIf you've bought a house worth `40 lakh, insure it against damage.You'll also have to review the contents and raise the cover, if needed.

COVER (STRUCTURE & CONTENT)

`5,000

Health insuranceAt this stage, you will need to increase the cover of your family

floater plan to include your children. Also consider a critical illness

rider, which will cover the risk of major illnesses like cancer, heartattack, etc. It takes care of the costly treatment and loss of income.

CRITICAL ILLNESS

`3,000

`10,000

`9,500

ANNUAL PREMIUM

`20,000Personal accident & disability coversIf your spouse (27 years) is working, ensure she also buys these.

ACCIDENT COVER

`2,000

Property insuranceYou may not have a house of your own, but cover the contents of

your house, including electronic gadgets, jewellery, etc.

`1,600

Personal accident & disability coversDon't write off this cover as superfluous since it’s probably one of

the most important ones you need once you start working. It willhelp ward off any loss of income due to a mishap, including partial/

total or temporary/permanent disability.

25 YEARS

30 YEARS 35 YEARS

45-50 YEARS 60

`7.5 lakh

CRITICAL ILLNESS COVER

5 lakh

Personal accidentSince you would have stopped

assets by now, you won't need

ANNUAL PREMIUM

`4,000

Health insuranceYou’re likely to be covered by your employer’s group insurance, but

given the rising cost of medical care and the fact that you could be

coverless between jobs, it’s better to have your own medical insur-

ance. Besides, the premium will be lower at this age.

`3 lakhTERM

1 year

Health insuranceConvert your policy into a family floater plan, which will cover both

you and your spouse at a lower premium than individual plans.

`4,800

Premiumsare indicative.Theywillvaryamonginsurers,andasper aperson'ssituation/needs.

Premiumsforhealthcoverwillvaryas perclaims.

Insteadofbuying freshcovers,itwill be cheapertobuytop-up plansand riders.

Considerinflation while calculating covers.

16 The Economic Times Wealth, August 26-September 1, 2013

ETM_2013_8!26!34-Insur at Each Age

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