The COVID-19 pandemic has taken the world by storm. The pandemic continues its march all over the world, and in India as of May 2020, total positive cases of the virus crossed the 1.6 lakh mark.
While people are not in the mood to shop for anything at the moment, the pervasive uncertainty caused by COVID-19 has shifted the consumer's focus on life insurance products. The rapid spread of the disease and the increasing death rates have forced people to take both life and health insurance seriously.
The coronavirus is a wake-up call for all those who thought that buying a life insurance policy is not important and has been avoiding hitherto. But now, life insurance should be one of your most important investments.
Term Insurance Plan During COVID-19
Several insurers have taken many dynamic steps upon the outbreak of the COVID-19. And one of them is covering death due to Covid-19 in their term insurance policy.
Therefore, taking a term insurance plan during this uncertain time is the single most proactive step you can take towards finding a good financial solution. These need-based health policies that cover expenses of the COVID-19 infection can be of great help during this time. Read on to know how.
What is term insurance?
Term insurance is a life insurance plan that covers your life for a fixed number of years. The key motive of a term insurance plan is to provide financial and liability protection for the dependents, in case of the sudden death of the policyholder.
Benefits of Term Insurance amid COVID-19
* Affordable premiums
An important benefit of taking term insurance is that it pays a lump sum insured at affordable premiums. At times like COVID-19, where you are at the risk of pay cuts and don't want to invest in an expensive insurance policy, term insurance is your savior.
* Coverage for critical illness, including COVID-19
The good news is that most of the insurance providers in India have included COVID-19 to their existing term insurance plans. The insurance companies have explained that the demise of an insured person due to Coronavirus will be treated as a general death and the claim will be permitted.
* Payout of sum assured
In case of the sudden demise of the person insured, the nominee will receive the assured amount. They can get the payout in the form of a lump sum or staggered payouts to manage their monthly expenses.
The bottom line
If you're thinking about whether you should purchase a term insurance policy during a pandemic like COVID-19, the short and simple answer is YES. Protect your loved ones from financial crisis under any untoward situation with term insurance.
Term insurance plans vary from company to company. So, please read the policy document to know the coverage and other details.