Insurance portfolio review: Up term cover with rising income, liabilities

A good rule of thumb is to purchase term cover amounting to 7-10 annual income, plus outstanding liabilities

Harsh Kumar (name changed on request), a 54-year-old Bengaluru resident, meticulously reviews his investment policy in December every year. This year, at the suggestion of a golfing buddy who is a financial planner, Kumar also turned his attention to his insurance portfolio. “A robust insurance portfolio provides the foundation upon which a strong investment strategy is built,” his friend said. Considering this, Kumar reviewed his policies and discovered significant gaps in his term and health insurance coverage. 

Reviewing term coverage

  If you have started working and have dependants who rely on your income, you must buy term insurance at