How To Select Your Life Insurance Policy During Coronavirus

It has now been over a year that the world has been battling a monster that they know little about– the deadly COVID-19 pandemic. Major concerns of how people will recover from the impact of the virus are omnipresent. Other than medical worries, the world has seen huge financial implications caused due to coronavirus. For India, the story remains the same, bleak, with a slight ray of hope. We are a country of 1.38 billion people and are facing and sharing one concern that many other developing nations are, a highly ambiguous financial future with uncertainty at its peak.

The overall GDP of the nation has dropped; in fact, over the last couple of quarters, it has underperformed. This is an implication of nationwide lockdowns and businesses coming to a standstill. This has rendered millions jobless, fending off lifetime savings. In retrospect, things are getting better, albeit slowly.

"Each of himself and God for all." This saying has never rendered truer than today. Given the financial woes that stare many in the face, we need to take a step back and figure out personal finances to the best of our abilities. That is where investments and insurance come into the fray.

The life insurance industry is expected to grow about 13% annually over the next five years. Hence, given that there is a pandemic without a cure doing the rounds, it makes natural sense to consider buying a life insurance policy today. This will not only work towards easing financial stress, but in the short terms will help ease anxiety pertaining to protecting yourself and your family.

There are many insurance companies offering life insurance plans, online term insurance plans and covid insurance schemes. Here is how you should select your life insurance policy during the coronavirus pandemic.

Choose A Covid Insurance Plan That Offers Financial Protection First

It is a known fact that this medical crisis has created a world of uncertainty looming over us. However, it has gifted insurance companies a chance to go back to the drawing boards and think about innovation, bettered customer experiences and fundamentally attractive cost structures.

Most players have come out with covid insurance plans that are created to cover expenses that come along with the virus. Those who unfortunately have been hit hard by Covid-19, are expected to spend multiple days in hospitals in normal care and intensive care too.

Hence, given the change in the insurance industry and the medical situation that we are in, let's study some of your insurance options to safeguard your family on a financial level:

Online Term Insurance Plans

Online Term insurance plans offer protection to the family of the policyholder for a stipulated term period for which the premium is being paid. In the event of death or total disability of the policyholder (depending on the policy) the family dependent on the policy are paid the sum assured. However, If the policyholder survives the entirety of the policy period, no benefit is paid.

Such an online term insurance cover during these Covid times makes a lot of sense. It is not easy planning such things, but at some point we all need to be less emotionally engaged and more practical. Because of Covid, buying a term insurance plan which doubles up as insurance for covid is a smart option.

Insurance Plans That Protect Loans

Loan protection policies are important. There could be situations where there is just one breadwinner in a family that has a home loan or car loan on their shoulders. In such cases insurance plans can help protect your loan/mortgage payments in the event of the death or terminal illness or disability of the head breadwinner.

Consumers have the option to choose between two such covid insurance protection plans:

Level Cover

These Level Covers are available to protect the policyholder's family for loan/mortgage repayments.

This plan works similarly like term plans. In such plans you are guaranteed a sum assured in case of the policyholder's death during the policy term. If the policyholder survives the policy period, no payments are made.

Reducing Cover

Reducing cover works like a term plan too. However, here the sum assured reduces over a period of time. Contrary to level covers where a lump sum payment is sanctioned, to the nominee in case of an uncertain event, here the sum assured for reducing covers decreases over time. If the policy holder survives the term insurance period, then the sum assured decreases to zero and no compensations are paid.

Last Word

The fact of the matter is that the coronavirus pandemic is a huge wake-up call for all those who have not considered buying an insurance plan. Life is uncertain, in fact it hasn't been more uncertain that it is currently and hence opting for a suitable insurance plan that covers your loved ones is the need of the hour.

And given that we Indians more often than not need a valid reason for most purchases, the uncertainty surrounding coronavirus is reason enough for us to consider securing our family's financial future in case an unexpected tragedy strikes through a covid insurance.