When should I review my takaful protection plan?

When was the last time you reviewed your protection plans? Many of us may overlook our takaful or financial protection plans from years ago. However, with changes in life and finances, it is crucial to ensure that your plan still meets your current needs. In this article, we will explore when and why you should recheck your protection plans to keep them relevant and effective.

1. There are financial changes 

One of the main reasons to review your protection plan is when your financial situation changes. For example, if you have received a salary increase or promotion, your financial capacity has grown, and your current plan may no longer provide sufficient coverage. Similarly, if you have taken on new financial obligations such as a home loan or car loan, you may need additional coverage to ensure that these liabilities are covered in case of unforeseen circumstances.

If your expereince a decrease in income due to a job loss or other reasons, you should also review your plan to ensure that it remains affordable. Adjustments may be needed to match your new financial capabilities, while still providing adequate protection for you and your family.

2. Protection plan changes occur

Takaful providers periodically make adjustments or introduce new plans that may offer better benefits or lower contribution. When there are changes to your provider's product offerings, it is worth considering whether switching to a newer plan could provide you with better value for money.

Rechecking and reviewing your protection plan when takaful providers announce updates can also help you stay informed about new features such as increased payout amounts, new riders or coverage options that were not available when you first signed up. These adjustments can better align with your current and future needs. You also need to be mindful on the waiting period or other terms and conditions that applies to the new offering and discuss thoroughly with agents to ensure your coverage is not compromised.

3. How many protection plan do I need?

Sometimes, people accumulate multiple protection plans over time without realising how the benefits may be overlapped. It is important to check how many plans you have and evaluate if they complement each other. You do not want to overpay for redundant coverage or miss gaps in protection that should be addressed.

For instance, if you already have a basic family takaful plan, you might only need to add on specific riders or supplemental coverage for things like critical illness or disability. A comprehensive review of all your existing plans ensures you are fully covered without unnecessary redundant coverages.

Regularly reviewing your takaful protection plans is essential to ensure they align with changes in your life, finances and needs. By taking these proactive steps, you can safeguard yourself and your family. Do not wait for something to happen; make sure your protection plan stays up-to-date and effective in addressing potential challenges.