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

Learn & Keep From the time you start working till retirement, each lifestage calls for a review of your insurance portfolio. While some covers, like those for vehicle and travel abroad, are mandatory, others need to be bought proactively. Find out the type and quantum of insurance you'll need.

Insurance for each lifestage

30 YEARS
MARRIED, NO KIDS
Life insurance
If 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. COVER ANNUAL PREMIUM TERM

35 YEARS
MARRIED, WITH KIDS
Life insurance
If 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: COVER ANNUAL PREMIUM TERM

45-50 YEARS
MIDDLE AGE, OLDER KIDS
Life insurance
During 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 endowment policies or child plans. So continue with your existing cover. COVER ANNUAL PREMIUM

60 YEARS
RETIREMENT
Life insurance
By this time, you would have stopped earning, your children would be financially independent, most of your liabilities, including loans and debts, would have been paid, and you would have built assets. So when the life cover's term ends, you won't need to buy more. COVER

`30 lakh

`4,200

30 years

`80 lakh
COVER

`9,500
ANNUAL PREMIUM

25 years
TERM

25 YEARS
If your spouse is 27 years old, non-smoking and employed, with a salary of `35,000 per month:

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

SINGLE & EMPLOYED

Life insurance
If you have no financial dependants, you don't need to buy a life cover, 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: COVER ANNUAL PREMIUM TERM

COVER

ANNUAL PREMIUM

TERM

`45 lakh

`6,500

30 years

`20 lakh

`3,400

30 years

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 premium is high. For your 4-year-old, it will yield `10-14 lakh on maturity. COVER ANNUAL PREMIUM TERM

If your spouse is non-working, buy a higher cover for yourself. COVER ANNUAL PREMIUM TERM

`50 lakh

`4,700

30 years

`40 lakh

`60,000

15 years

`80 lakh
SPOUSE COVER

`9,500
ANNUAL PREMIUM

Nil
Health insurance
This is the most crucial period for your health as your medical expenses are likely to comprise a big chunk of your outflow. So, ensure your premiums are paid regularly. COVER ANNUAL PREMIUM

`20 lakh

`3,400

30 years
Health insurance
Convert your policy into a family floater plan, which will cover both you and your spouse at a lower premium than individual plans. COVER ANNUAL PREMIUM

Health insurance
At 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, heart attack, etc. It takes care of the costly treatment and loss of income. COVER ANNUAL PREMIUM

`45 lakh
Health insurance

`6,500

Health insurance
Youre likely to be covered by your employers group insurance, but given the rising cost of medical care and the fact that you could be coverless between jobs, its better to have your own medical insurance. Besides, the premium will be lower at this age. COVER ANNUAL PREMIUM TERM

`3 lakh

`4,800

`5 lakh
CRITICAL ILLNESS

`10,000
ANNUAL PREMIUM

This is a critical period since you are likely to start facing medical problems. 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. COVER ANNUAL PREMIUM

`10 lakh

Will vary depending on claims.

`3 lakh

`4,000

1 year

Personal accident & disability covers

If your spouse (27 years) is working, ensure she also buys these. ACCIDENT COVER ANNUAL PREMIUM

`5 lakh

`3,000

Personal accident & disability covers

Since you would have stopped working and would have sufficient assets by now, you won't need to buy a fresh plan. COVER

`7.5 lakh
Personal accident & disability covers
Continue with your existing covers. CRITICAL ILLNESS COVER

`20,000
ANNUAL PREMIUM

Personal accident & disability covers

Don't write off this cover as superfluous since its probably one of the most important ones you need once you start working. It will help ward off any loss of income due to a mishap, including partial/ total or temporary/permanent disability. ACCIDENT COVER ANNUAL PREMIUM

`25 lakh

`2,000

`5 lakh

`4,500
Premiums are indicative. They will vary among insurers, and as per a person's situation/needs. Premiums for health cover will vary as per claims. Instead of buying fresh covers, it will be cheaper to buy top-up plans and riders. Consider inflation while calculating covers. TEXT

Nil
Property insurance
Do not end this policy as you need to protect your property and its contents at all times. Review to account for inflation and increase in contents. COVER (STRUCTURE & CONTENT) ANNUAL PREMIUM

Continue with your existing covers for accident & disability, as well as property insurance. Raise the latter to account for inflation or after a rise in contents.

Property insurance
You may not have a house of your own, but cover the contents of your house, including electronic gadgets, jewellery, etc. COVER ANNUAL PREMIUM

Property insurance
If 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) ANNUAL PREMIUM

`25 lakh
DISABILITY COVER

`1,500
ANNUAL PREMIUM

`25 lakh

`1,600

`5 lakh

`1,600

`50 lakh

`5,000

`60 lakh

`6,200

RIJU MEHTA