One of the biggest misunderstandings about protection, including the cover of a critical illness, is that once you have taken the policy, you will live and do not need to be reviewed. However, this is not true and there are many reasons why you should regularly review your level of protection, here are only a few
The power to erode inflation
The amount of your coverage – known as a sum guaranteed in insurance requirements – that you bought years ago may not be enough, thanks to the increase in living costs. With only 2.5% inflation, you will lose almost half of your purchasing power for 25 years. So, $ 10,000 today will only have a purchasing power of $ 5,394 in 25 years.
Dependents
When you move through different stages of life such as marriage and having children, the number of people who financially depend on you will also change. Naturally, the amount of coverage needed will increase with the number of dependents you have. Think about what will happen if they are left with an unpaid mortgage, the cost of their daily education and expenses, if you can no longer provide it.
Lifestyle
When your income level rises, you must increase the amount of coverage you have to match higher net worth and a more expensive lifestyle. This will protect you and your loved ones from potential (and uncomfortable) decreased lifestyle, if you cannot provide it.
Reviewing your overall level of protection is an integral part of your financial plan. Please contact if there is a change in your personal condition that might have an impact on the amount of protection you need.
Important information
This article is intended for general circulation and information objectives only. This should not be published, circulated, reproduced or distributed as a whole or partly to others without previous approval. This article should not be interpreted as an offer, invitation to offer, recommendation or supply of financial advice. This information does not take into account the specific investment objectives, financial situations or special needs.
Suggestions must be sought from licensed financial advisers before making a decision. While we have taken all the reasonable care to ensure that the information contained in this article is not true or misleading during publication, we cannot guarantee the accuracy or completeness. Every opinion or estimate contained in this article can change without notice.
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