As the world still suffers through COVID-19, life insurance is no longer a benefit but a necessity. When the virus was detected, it took a mere couple of months for it to shake the whole world. Due to this, people of all ages and gender, regardless of their financial background, are being sensitive about their health.
With such a growing awareness, India has seen a keen surge in people investing in life insurance for a safer and better future amidst this pandemic. It is highly suggested that you get a life insurance policy for the betterment of your loved ones. If you’re wondering how a life insurance policy benefits you during COVID-19, then you’re at the right place.
In this article, you’ll know about the various benefits of purchasing life insurance during COVID-19.
What is Life Insurance?
Life insurance can be termed as a contract signed between you and the insurance company. In this contract, the insurer is liable to provide a collective sum of money in return for premiums, upon your death or completion of a specific period, depending on the specifications of the policy. There are various types of life insurance policies as per varying needs.
You can either choose to purchase pure life insurance that only provides you benefits upon your death or a protection cum savings insurance that also allows you to collect a corpus of monetary resources along with the death benefits. Life insurance policies can also be personalized with the help of different riders to extend the coverage of the policy.
5 Reasons Why Life Insurance is a Savior in COVID-19
1. Unavailability of Liquid Assets
Several people have lost their jobs and become unemployed during these unprecedented times. This has led to a shortage of liquid assets in the market as the majority of the monetary resources are being used for essential goods and services. Additionally, there’s also a likelihood of concern about treatment expenditures in case of any unforeseen events.
Keeping the current scenario in mind, hospital bills also play a major role in this cash crunch. On top of that, there’s also a significant level of threat associated with job security that may lead to unstable economic conditions in several households, especially the working class of the society. Due to such triggers, a life insurance policy is an extremely crucial financial investment.
As it allows you to keep your funds safer, you can generate a corpus of money for the financial stability of your family’s future. Moreover, with the current situation in mind, life insurance also provides a lump sum amount of money in the event of your death to your selected nominee. This ensures that your loved ones don’t have to struggle through an economic crisis.
2. The whole Family Covered in One Plan
As the demand for life insurance has grown gradually, the health services have experienced a keen rise in their costs. Moreover, nuclear families affected by the quarantine are looking after family floater life insurance plans to be able to gain a good cover at affordable rates. This plan offers the assured sum to all the members, shared equally among everyone listed in the policy.
With this plan, even if one of the members gets hospitalized and requires the immediate need of funds, only a portion of the collected amount will be utilized, and the rest will still be available for other members. There are several unique family floater plans available in the market that offer dual assured policies in which all members are assured to gain a fixed sum as well as a floating sum.
3. Financial Security for Long Term
The pandemic called for the need for continuous lockdowns that urged people to dig up more of their savings just to meet the daily financial requirements. The practice of saving funds for situations like this is a common practice in India and holds great importance. This also highlights the emerging importance of a life insurance policy.
Moreover, as age is one of the most critical factors to determine the benefit of your insurance policy, you should start it as early as possible to enjoy lower premium rates as well. Additionally, with a myriad of beneficial riders such as accidental cover, you can certainly develop a financial cushion for your family in the long term.
4. Relief from Pre-Post Treatment Expenses
If your life insurance policy also provides you coverage for your health, it surely also includes free annual health check-ups for absolutely free of cost, including tests like sugar, blood, cholesterol, urine, ECG test, and so on. This is a great deal to keep note of your health and prevent many chronic diseases way before they’re likely to happen.
Through these annual check-ups, you can stay updated about any disease or illness that may occur in the future, and therefore saving you money on pre-medical expenses. On top of that, life insurance provides additional riders for critical illnesses that also cover COVID-19, so you always have a safeguard and reliability for your pre-and post-medical expenses.
Long Term Tax-Saving Benefits
This pandemic has also brought a lot of changes in the market, and the economy is yet to recover. With that said, you need to have a reliable way to keep your funds safe from growing inflation. With a life insurance policy, you can also enjoy tax-saving benefits as per the norms of the Income-tax Act of India.
The Takeaway
If you’ve come this far, you would have understood the importance of life insurance during such unprecedented times. If you want to make sure that your family remains financially secure during these tough times, you must ensure that you clearly understand what is life insurance and purchase a policy for the benefit of your loved ones.
It not only provides financial benefits to your dependents in the event of your unfortunate death but also allows you to accumulate savings for a better future. They’re certainly one of the most important financial investments of life.
