You need to ask this question at a certain point in your life and more so if you have got a family to look after. But apart from your marital status, it is a must to discuss and question your financial status and see if you are putting the right amount of money into your insurance funds.
Investing in insurance requires time and perspective. Be at peace when you decide to take the matter up for discussion by asking the right questions when it comes to your family’s interests.
How will you sponsor your kids’ education?
How can you get debt-free in the coming years?
Are you saving enough to take care of dependent parents?
These are the questions you should ask and discuss with your spouse. When you take stock of responsibilities and goals, it becomes clear if you are saving the right amount or not. It will also give a chance to both the partners to see how individually they can contribute to the cause and make it a smooth financial ride for the family.
If you have a life insurance plan, see how it supports your current requirements and, if needed, you can go for a better plan.
When is the right time to talk about insurance?
Specifically, there is none. But all of us go through some events in life, and they are the perfect time to look at how much insurance backing the family has and whether it will survive the demise of one of the earning members. Moments such as the birth of a child, buying a new house, or a sudden medical emergency are times when you should consider having the talk.
Plan your moves ahead
Preparing your family for the worst possible outcome is possible when you plan things. If your family has two earning members, in such a case, the lifestyle will certainly be different than a family backed by single-handed income.
Consider the factors where the family may have to cut corners if you lose an earning member. Check your savings and whether it would be ideal to support the family in the event of a lower or no monthly income. It is better to make negligible changes now to be secure in the future.
The good thing about savings is that you can start any time you want. The Kotak811 zero balance account is the easiest and most convenient way to save. You can open the account from the comfort of your own home in a matter of minutes. This is a no maintenance account, and you don’t have to keep a specific amount as monthly average balance in the account at all times.
Choose the right insurance
Learn about the different types of insurance policies available, their specifications, pricing, and schedule. A pure risk plan is not costly and will provide a decent amount when required. On the other hand, if you are looking for long term plans, select a couple of them after considering the premium amount and benefits before investing.
Share your details
It is essential for you and your spouse to know about all the financial whereabouts and assets the family has. Both partners should properly document everything and store it in a safe place that is accessible by both.
It is always family first, and when you are buying insurance, you are fueling the cause. So, be practical, discuss all possibilities before purchasing a policy.
The COVID-19 pandemic was an eye opener and many of us learnt things the hard way, but it is time that we put that knowledge to better use for our families. Click here to learn more about ways to save money for insurance and other investment opportunities.