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Life Insurance - How often should I review my insurance portfolio?

25 May 2004

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Perhaps it is only after much persuasion that you finally bought insurance. But if you thought that you need not look into it for another 15 to 20 years you could be highly mistaken.

Know that once you have purchased insurance you cannot rest assured thinking that you need not take a relook for around a decade's time. For, just as increased income initiates an enhanced lifestyle you need to reconsider your insurance requirements on a regular basis. Your needs may change with increased income and passage of time and accordingly you need to buy adequate insurance after taking into account the changes that life has brought in.

Wondering how often you need to analyse your insurance requirements? Once in 3 years should be appropriate depending on your changing priorities and the enhancement in your lifestyle. If your insurance portfolio consists of unit linked plans know that you need to keep a track of them once in 6 months - for they are market linked.

Switch funds and opt for a more balanced fund if you are not comfortable with equity funds. Also note that need analysis holds the key to the right combination of insurance plans for your portfolio. Increase your insurance limit after considering your income, age, priorities, risk. Reviewing your insurance needs will stand you and your family in good stead and act as a strong buffer enabling you to sail through troublesome times with ease.

Comparison shopping is the in-thing today in insurance. Before you narrow down on a particular insurance product look out - there may be better products with more suitable features at competitive prices. Take your pick from them.

Source: Insuremagic.com BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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