How to Evaluate your Insurance Policies for your Family

As we approach the dawn of a new year, it’s an opportune time to reassess and enhance your family’s financial security.

The cost of living, which includes daily necessities, education, and healthcare expenses, can be greatly impacted by high inflation. Families who fail to adapt their insurance coverage to the rising costs of living may find themselves in a less-than-ideal financial predicament since insurance payouts may not match the increasing costs.  Protecting your family against the financial difficulties caused by rising inflation requires being proactive in monitoring and reviewing their insurance policies.

One critical aspect of this security is having the right insurance policies in place. Whether it’s planning for your child’s education, ensuring adequate medical coverage for seniors, or safeguarding your family during travel, a well-thought-out insurance strategy is vital. In this article, we’ll explore key considerations for evaluating insurance policies to meet the diverse needs of your family.

Life Insurance for Breadwinners

Life insurance is a cornerstone of financial planning, especially for those responsible for the family’s financial well-being. Reevaluate your life insurance coverage to ensure that it aligns with your family’s current and future needs. To determine the amount of coverage needed, you need to ascertain the annual expenditure of your dependents, how long they would need it, and the inflation factor to use in the event of early demise.  Having evaluated the amount of coverage required, the policy term, and the type of policy (term, whole life, or a combination), payment terms are also important. Ensure that the beneficiaries are updated and review the policy periodically to adjust coverage as circumstances change.

Income Protection Insurance

In the event of a disability or illness preventing the breadwinners from working, income protection insurance becomes crucial. Evaluate your existing coverage or consider obtaining a policy that provides a steady stream of income in such situations. Look for policies with shorter waiting periods and longer benefit periods to ensure financial stability during challenging times.

Medical Insurance for Seniors

As family members age, medical expenses tend to increase. Assess the adequacy of your seniors’ health insurance coverage. Look for policies that cater to the specific healthcare needs of seniors, including coverage for chronic illnesses, regular health check-ups, and hospitalization expenses. Evaluate the policy’s renewal conditions and any age-related limitations. Consider policies that offer lifelong renewability to ensure continuous coverage.

Child Education Planning

One of the most significant financial responsibilities for parents is planning your child’s education. Evaluate your existing education insurance policies or consider obtaining one if you haven’t already. Look for policies that not only cover tuition fees but also provide financial support in case of unforeseen circumstances. Consider factors such as maturity benefits, flexibility in premium payments, and the ability to customize the policy based on your child’s current and future educational needs.

Emergency Funds and Travel Insurance

An often overlooked aspect of financial planning is having an emergency fund. Evaluate your family’s emergency fund and ensure it covers at least three to six months’ worth of living expenses. Additionally, when planning family vacations, consider investing in comprehensive travel insurance. Look for policies that cover trip cancellations, medical emergencies abroad, and unexpected events such as lost luggage.

Reviewing Policy Exclusions and Inclusions

Thoroughly review the terms and conditions of each insurance policy. Understand the exclusions and limitations to avoid surprises when making a claim. Additionally, check for any new inclusions or benefits that may have been added since you initially purchased the policy. Stay informed about policy updates and communicate with your insurance provider regularly.


As you prepare to usher in the new year, take the time to assess and enhance your family’s insurance coverage. By carefully evaluating policies related to child education, senior health, life insurance, emergency funds, and travel, you can ensure that your family is well-protected in the face of life’s uncertainties. Regular reviews and updates to your insurance strategy will contribute to financial security and peace of mind for you and your loved ones in the years to come.

Kindly get in touch with your preferred Avallis Financial Adviser at +65 62205333 to schedule a review of your family’s policies if you have not yet done so.