India, Nov. 3 -- VVikram, 36, bought a Rs75 lakh term plan when he was 28, single and earning Rs9 lakh a year in Bengaluru. It felt like plenty at the time. Eight years later, he is married with two children, has an Rs80 lakh home loan and earns Rs24 lakh a year. He hasn't looked at his policy once since buying it. On paper, he is insured. In reality, his cover wouldn't even clear the house.
Term insurance is often treated as a one-time decision. Your life doesn't stay still, though, and the cover you bought years ago was sized for a very different version of you.
Why Does A Policy That Was Right Then Fall Short Now?
Two things work against an old policy. The first is that your responsibilities grow. Marriage, children, loans and supporti...