Insurance For Couples: Here's How To Plan For Your Protection Goals

Among the events that can be called life-changing, marriage must rank at the very top. It is not merely a social and personal contract but an unconditional acceptance of another life into your own, perhaps for the rest of your life. All your decisions and actions are irrevocably tied to your partner. 

Post marriage liabilities and responsibilities increase. The googlies that life may throw at you now have a wider circle of impact. While you can’t anticipate every event, you can mitigate the risks by planning sensibly. Insurance is always a good place, to begin with. It is the foundation of any sensible financial plan.

Having the right type of insurance with an adequate sum insured will ensure your family has a financial cushion even if there comes a time when you aren’t around. Here is what you need to consider as a couple while drawing up a financial plan post-marriage:

TERM LIFE INSURANCE

Term life insurance provides a financial safety net for your loved ones when you are not around and should be non-negotiable in your financial planning. It is even more important if you and your spouse are dependent on each other for financial support.

The earlier you buy a life insurance policy, the more affordable it is. The premium for a term life insurance increases with age, so it's best to start as early as you can. Another advantage is that your premium stays locked for a life time once you purchase your term insurance plan.

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Term life insurance is one of the cheapest financial instruments available in the market that provides protection against risks such as death, disease, and disability. For a 35-years-old male, who is a non-smoker, a Rs 1 crore term life insurance plan covering up to 75 years of age will cost around Rs 1,830 per month.

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Moreover, there are plans that provide cover for loss of income due to disability and critical illnesses at an added cost.

HEALTH INSURANCE

Health insurance is a must-have for a young married couple. At this point in time in life, you need to have adequate health protection so that your savings are not impacted if any of your family members get an ailment. One should look at buying a comprehensive health insurance policy with as high a sum assured one can afford so that any unforeseen healthcare expenses are taken care of. Ideally, a couple living in a metro city should opt for a Rs 1 crore health insurance plan. 

India’s healthcare inflation has been rising twice the rate of overall inflation, according to the Economic Survey, 2019. Today, treatment costs for critical illnesses such as liver or lung transplant can be upwards of Rs 25 lakh. The minimum cost of treatment for a critical illness like cancer in India ranges between Rs 15-18 lakh. Going by these high costs, having a health insurance plan with an adequate sum assured is a must. 

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Today, some of the new-age health insurance plans provide a Rs 1 crore cover at a nominal cost. And, for a young couple, buying a family floater health insurance plan is a more economical option than an individual cover. For instance, Max Bupa Super Saver family floater plan for a 30-years old male and female, with a sum assured of Rs 1 crore, cost Rs 14,729 annually. The plan has special features such as no cap on hospital room rents and covers all daycare treatments.

While buying a health insurance plan, it is also advisable to check the waiting period for specific illnesses and pre-existing diseases. Health insurance plans usually have a waiting period of four years for pre-existing diseases. That's why financial advisors strongly recommend buying a health insurance cover at a young age.   

It is also advisable not to rely on your corporate health insurance plan because it usually has a lower cover and won’t be usable once you leave the company.

(Article edited by: Sunny Lamba)

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