India has been amongst the worst-hit countries in the world that have been affected by COVID-19. Millions of jobs are lost, and many people have succumbed to the virus.
With the onset of coronavirus pandemic all over the world, the term life insurance has taken on a whole different meaning, especially in India. There is a paradigm shift in the number of people who want to buy life insurance, just when more and more people are testing positive for COVID-19. The upward trend is only logical given the prime objective of a life insurance policy, to provide an immediate financial solution to the income problem in case of a sudden demise.
So, what is life insurance, and how does it help against such uncertainties? Imagine if you were to be the sole breadwinner of your family, and should something happen to you due to COVID-19 infection, then the death benefit from your insurance policy will help your loved ones to at least overcome the financial loss you leave behind. It will allow them to get back on their feet, even in your absence.
If you want to provide a safety net to your family and protect their financial future, then now is a good time as any to buy life insurance. Let us talk about some fundamental reasons to help you make a well-informed decision.
1. Increase in insurance prices
The insurance industry is probably one of the few industries that remained immune from the global pandemic. If anything, there has been an elevated number of life insurance buyers who now understand how uncertain life can be. With the increased rate of mortality and the life insurance depending on mortality rates to determine its premiums, expect to see an increase in the prices.
There have been multiple reports about how insurance providers are planning to increase the premium prices to cover the costs associated with deaths caused due to coronavirus. Therefore, even the most basic plan, such as term insurance, will witness a surge of 40% in its prices.
2. Cover your risk
Life insurance is an effective method to cover your risk associated with death. With the right product, you will be able to get reasonable coverage for a specific duration at an affordable price.
Since COVID has claimed many lives all over the world, it is highly recommended to purchase term insurance so that your family is financially secure in case of your untimely demise.
3. Buy insurance online
Thanks to the advancement in technology, you can do most of your work from the comforts of your home. The same holds true for the insurance industry as well.
Therefore, you can not only buy life insurance online but also compare policies before making an investment decision. By purchasing a policy online, you can also protect yourself against the risk of exposure by limiting contact with agents.
4. Medical limitations
In the current scenario, especially with the ongoing medical crisis, all the hospitals and test centres are working at their full capacity. As such, several insurance providers now offer medical test exemptions, making it easier to get an insurance policy. It is possible to give a medical declaration on the proposal form over the phone and online.
5. Mental peace
By investing in a life insurance policy right now, you can give yourself the equanimity that your family will be well cared for, even if something happens to you. Since we are living in uncertain times and tragedy can strike anyone, it is better to protect yourself and your loved ones against these uncertainties.
6. Save taxes
Other than providing you protection, life insurance also gives you an additional benefit of tax saving. Under the provisions of section 80C of the Income Tax Act, 1961, you can avail tax benefits up to Rs. 1.5 Lakhs on life insurance premiums. Moreover, you are also eligible for tax-free death or maturity benefit u/s 10(D) of the Income Tax Act.
7. Rider benefits
If you buy a term life policy, you can enhance the coverage of your insurance plan by investing in various riders. These riders are like add-ons that can supplement your existing plan and give you extended protection.
For instance, if you add a critical illness rider to your insurance, your insurance provider will pay for unexpected expenditures arising out of any illness listed in your policy document.
Coronavirus and the lockdown have changed a lot of things in a very short time. As such, reliable insurance companies, such as Max Life Insurance, have also adapted themselves to this change and started providing online services to cater to customer needs from the safety of their homes.
This is the right time to secure your finances and protect yourself against the unpredictable times brought on by this global pandemic. Therefore, you must consider investing in a life insurance plan now to safeguard your family’s financial interests.