Saving tax is one of the main reasons that people buy term insurance policies. However, you shouldn't buy life insurance every year. You need adequate life insurance to protect your investment.

Your life insurance needs to be able to keep pace with your daily life. A few life events can have a significant impact on your life insurance needs. These are five major life events that will require you to update your life insurance to meet your needs.

Income growth is one the most common phenomena that directly impacts your life insurance needs. This does not mean that you should purchase a new policy every time your life insurance needs change.

When your income is sufficient to support your lifestyle and your household budget, you may need additional life insurance. In just a few steps, you can calculate how much additional life insurance you need.

• Your total life insurance needs are 10-15 times your annual take-home earnings
• To find the amount assured for your new insurance policy, subtract your current life coverage from this amount

Here's a sample estimate: Let's say your annual take-home earnings are Rs. 15 lakhs and your term insurance is Rs. 1 crore. Your total life insurance needs are at least Rs. 1.5 crores (10x15 lakhs). You already have a Rs. You can also get Rs. 1 crore additional life cover. You can get a 50 lakh term policy to meet your needs.

Term plans can be used to protect your family and pass an estate on to your children. You only need to get term coverage until the age of 99. Despite the increase in life expectancy, the average life expectancy will remain below 99 for the next 50 years.

This means that your 99-year term plan is most likely be eligible for a death claim even if your death is totally natural. It will provide your grandchildren or nominees with an estate ready to use.

This money, which is a death benefit from your life insurance company, will not be subject to tax in the hands you nominate. You can also set up trusts to protect the funds and distribute the income to your beneficiaries.

This is a great way to make a difference in the world and help fund charitable work long after you have left this world.

To simplify your life and that of your dependents following your death, regular income is a key feature. Traditional life insurance plans, as well as older term insurance plans, offer lump-sum payouts. To run the household efficiently, however, your family will require a steady income.

The family will need to purchase an annuity from the insurance company using the lump-sum money they have received. This is a wasteful effort that could lead to a wrong allocation or a wrong investment.

They don't need to worry about this step, if they are able to receive a steady and predictable monthly income as part a life insurance claim settlement. This is not possible for older people or term insurance policies.

You cannot change to this option once you have purchased it. Therefore, you will need to add a new policy that has regular income payout benefits. Canara HSBC OBC Life's online iSelectSmart360 Term Plan offers the option of paying 100% of the death benefit as regular Income. The family can also receive income for up 40 years following the claim.

You should add additional life insurance to your contingency file if you take out a large loan for a business or building asset. A mishap could result in the liability being passed on to your dependent.

It is not enough to increase only your life insurance. Once you have reached your ultimate fate, life insurance will be available. Even if you are unable to work due to a life-threatening disease or disability, you must take care of the liabilities.

Consider adding critical and accidental disability coverage. Both can be added to your term life insurance as an additional benefit.

Parents are already investing in their child's financial future. You should not invest in a child plan through a life insurance company. To secure your goal, you will need to add life insurance.

The child plan has an inbuilt feature that, once you have set a goal, the plan will pay the amount to your child. Great if you can complete your investment tenure and accumulate enough money!

You should consider increasing your life coverage if you purchased the insurance before you married. You can't increase your term coverage with modern online term insurance plans.

However, if you don't have a plan for the future, it is worth looking into buying a new one.

It is not a good idea for your existing term coverage to be replaced with a new one. This is because even though your old plan was less feature-rich, you will still pay a lower premium and have higher odds of settling a claim quickly.

If your current term plan expires soon, you should keep it and not get a replacement. However, it is important to keep your life insurance current. Nothing is more important than providing a secure financial future for your family.

However, in the unlikely event that the investment in the child's goal is canceled due to an unfavorable development, the goal will not be affected.

You should consider increasing your life coverage if you purchased the insurance before you married. You can't increase your term coverage with modern online term insurance plans.

However, if you don't have a plan for the future, it is worth looking into buying a new one.

It is not a good idea for your existing term coverage to be replaced with a new one. This is because even though your old plan was less feature-rich, you will still pay a lower premium and have higher odds of settling a claim quickly.

If your current term plan expires soon, you should keep it and not get a replacement. However, it is important to keep your life insurance current. Nothing is more important than providing a secure financial future for your family.