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A New Year Resolution for 2019 you might actually keep

It’s that time of the year again! It’s the time to reminisce on the highs and lows of the previous year, to experience the optimism of starting with a clean slate, and to celebrate moving to a sparkling new calendar.

It is also the time where many people resolve to make improvements in their life to make the upcoming year, the best year of their life.

While losing weight, getting organized and quitting cigarettes are the most common resolutions. This year, you can break the norm and resolve to conduct a diligent review your personal risk exposure and in turn review your insurance portfolio.

 

Why start your exciting New Year with a dull Insurance conversation?

Insurance is the goalkeeper of your financial portfolio and it doesn’t matter how many goals your ‘Shares or Mutual funds’ score if your goalkeeper lets in easy goals. Furthermore, your insurance needs don’t remain the same throughout your life; they keep changing as per the different phases in our life. The changes can be in assets and liabilities, earning and spending capacity, standard of living, family needs etc. Therefore, it is pragmatic to review your insurance portfolio at regular intervals. This exercise provides a great opportunity to address any gaps in your insurance coverage based on the recent updates in your life.

Let’s delve deeper in each of these life events to understand the importance of this activity:

 

  • Standard of Living:
  1. Did you finally crack that BIG business deal this year? Or did you land your dream job/position?Obviously, with the rise in income, your standard of living goes up as well. You move to swankier houses, cars, electronics, and so on. First and Foremost have you got all your precious assets insured ?if yes, have you updated the sum insured (value ) under your policy to safeguard your new lifestyle against unexpected financial disasters? Is your family health insurance coverage adequate to protect you against emergencies and does it provide sufficient financial assistance? Therefore, evaluate if your sum insured limits do justice to your current standard of living.
  2. Are you planning that foreign trip to your dream destination?
    If you are planning a foreign vacation this year, please be informed that in spite of meticulous planning, foreign trips can easily became a pain in the neck. Whether it is due to loss of baggage, flight cancellation, loss of passport, or a sudden health issue, there are a number of factors that can be a upsetting on your vacation. Therefore, it is better to make your vacations hassle-free with a Travel Insurance Policy.
  • Family Comes First – Time for some good news!!
  1. Are you planning to tie the knot?
    The most memorable day in your life can turn awry due to unforeseen ; unfortunate events. Considering the amount of money involved in Indian Weddings, a cancellation has the potential to wipe out your life-long savings. Hence, the security of a Wedding Insurance Policy is recommended.
  2. Are you planning to start a family?
    As your family size increases, you need to evaluate if your sum insured limits are enough to cover the new members. To start with, you should confirm if your health insurance policy is a stand-alone one or a family floater. If it is the latter, check if maternity benefit, or new born baby benefit is covered in your current policy. If you are the sole bread-winner in a big family, it is recommended to take riders such as Personal Accident Policy and Critical Illness Policy to ensure financial safety of your family.

    Moreover, it is recommended to include parents in your health insurance policy as early as possible. Insurance companies have an age limit in Mediclaim Policies, therefore, it becomes challenging to find a parental policy after parents have crossed 65 years of age.
  • Purchase of Prized Possessions:
  1. Did you recently purchase a car?
    Hope your insurance policies are in place to protect you from any unforeseen catastrophe.
    Check if your Car Insurance policy is a comprehensive policy which covers your car from damage and not just a third-party liability policy which provides protection only to the third-party in case of an accident. Explore options for (recommended) add on covers such as Zero-Depreciation and Engine protect to safeguard you from any significant loss.
  2. Have you finally moved into your dream home?
    Considering the unpredictability of weather and the recent natural calamities such as the Chennai Floods, Kerala Floods, Cyclone Hudhud etc. it is imperative to opt for an adequate cover for your beloved homes with a Home Insurance Policy. In addition, it is sensible to cover your valuables such as electronic gadgets, home appliances, jewellery from theft and burglary. If you have not considered home insurance yet, don’t wait for another calamity to change your mind.
  • Digital Footprints:
  1. Has your dependency on the Internet increased?
    After Demonetization, India endeavored to become a Cashless economy. The masses moved to online purchases and online transactions. However, a new world brings new risks as cyber security in India is a questionable topic. Cyber Risks continue to rise as your dependency on the internet increases. With people spending countless hours on the internet, threats such as hacking, phishing, cyber-bullying, identity theft, unauthorized online transactions, E-extortions, etc have intensified. Therefore, in this current era, it is imperative to safeguard our Digital presence with a Personal Cyber Insurance Policy.

To sum it up, an Insurance Portfolio can’t follow a ‘Buy once and continue forever’ pattern. It requires a timely review to ensure that it’s still relevant considering the ever-changing world. What better time to complete this activity then the start of the year when you are ready to welcome new hopes, new aspirations, new achievements, and new memories with a fresh mind.