Why Term Insurance Is Important in times of COVID-19?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Why Term Insurance Is Important in times of COVID-19?

Why Term Insurance Is Important in times of COVID-19?
  • 15th Dec 2021 |
  • 470

The onset of Covid-19 has dramatically changed our perception of looking at life and health. India witnessed one of the longest and the strictest lockdowns imposed anywhere in the world. As a result, people were forced to realign their financial priorities. One of the significant shifts observed is that more and more people are buying term insurance to protect their families.

While term insurances have always been considered an excellent option to secure the future of loved ones, it ironically took a global pandemic to catapult their importance. If you are still wondering why it is necessary to purchase a term policy, read on to know more about the importance of term insurance during and post Covid-19.

1.Avoid Cash Crunch

In India, the economy shrank sharply because of the pandemic and the subsequent lockdown measures taken by the government. This has directly resulted in job losses and unemployment. The common person had to face a severe shortage of funds. In such trying times, all non-essential spending had to be curtailed. 

Term insurance is relatively cheaper. It is easy to maintain over a long period or in the event of unforeseen job loss or unemployment. Hence, people are actively considering term insurance as a fail-safe.

2.Financial Protection for Family

The second wave of Covid-19 and the threat of the imminent third wave has made people anxious about protecting the future of their families in their absence. People have finally understood the brittleness of life. With term insurance, an individual

  • Can provide long-term financial security to the family of the policyholder on their untimely demise. 
  • Can plan one-time expenses like a child’s education, marriage even when they are not around.
  • Can buy additional health benefits such as critical illness rider , hospitalisation rider, etc.
  • Can start early to reduce the premium amount to be paid significantly.

3.Protection Against Critical Illnesses

COVID-19 showed its uglier side in the second wave in India when thousands of people developed serious post-covid complications. While your health insurance policy may cover you for health issues, critical illnesses such as cardiovascular diseases, kidney failure and cancer are usually covered with an add-on critical illness cover. Most term insurance policies also come with critical illness cover and provide a lump sum if the policyholder is diagnosed with a critical illness. 

4.Accentuate Your Policy with Add-on Riders

With a term insurance policy, you can add riders to it and get extra coverage benefits. Some of the riders that can help in increasing your cover are;

  • Premium Waiver Rider
  • Permanent Disability Benefit Rider
  • 5.Peace of Mind

    Having term insurance helps policyholders ensure that their family and loved ones will be financially safe and secure when they are not around. The very fact that you no longer have to worry about their future brings a great deal of happiness, emotional satisfaction and peace of mind. It keeps anxiety at bay. In these times of uncertainty, this is no lesser achievement of sorts.

    The covid-19 has reconfirmed for a lot of us that facts are stranger than fiction. We never know what lies ahead of us. Hopefully, a time may come when humanity will survive and thrive without any illness or epidemic. But until then, term insurance can be our best bet to prepare ourselves and our families for the uncertainties we may face.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Married People Should Buy Term Insurance Under MWP Act?

Gift Your Father A Term Insurance Plan This Father's Day

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

How to Identify Term Insurance According to Your Needs?

Why does every working women need life insurance?

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Term Plan with Spouse Cover

8 Things To Do After Buying Term Insurance

Term Insurance Age Limit – Term Plan for All Age Groups

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Can You Increase Your Term Insurance Cover?

9 Most Frequently Asked Questions on Term Insurance

Why Premium Amount for Term Insurance is So Low?

How Not To Get Your Term Insurance Claim Rejected

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

10 Ways to Mentally Refresh After a Stressful Day

5 Reasons to Buy Term Insurance When You are in Your 30s

8 Factors to consider before choosing a Critical Illness Insurance

Why Spending Time with Friends is Essential for Your Mental Health?

How Much Term Insurance Do I Need

Do You Need Term Insurance Cover After Retirement?

All you need to Know about Term Insurance Plans for housewives

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

What Should You opt for - Limited or Premium Pay?

Is Life Insurance Investment Worthy Enough

Can I Buy Term Insurance for a COVID-19 Patient?

What is Insurance Premium - A Detailed Guide

4 Methods to Calculate How Much Term Insurance You Need

How To Change The Nominee in Term Insurance?

4 Things To Expect From Your Term Insurance Plan in India

9 Ways to Help Family Members in Financial Trouble

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Is It Good To Buy A Term Insurance Plan In 2022?

Should You Buy a Term Plan After 40?

Ensure Protection Against Death, Disease & Disability With Life Insurance

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Different Types of Protection Plans

Why is it important to buy term insurance plan?

Is a Term Insurance Policy Portable?

Side Effects of Covid-19 Booster Doses

Insurance Policy for Housewife In India

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Why Term Insurance Is Better Than ULIP?

What is a term insurance plan with a return of premium, and how does it work?

Term Insurance: Smokers vs Non-Smokers

Busting Myths and Facts About Term Insurance Policies

How to Compare Term Insurance Online

How Does Term Life Insurance Work? Learn the Benefits

Protection for your family

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Is Group Term Life Insurance Provided By Employer Sufficient?

Is Term Life Insurance Plan an Investment or Expense?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Tips to Choose the Right Term Period for Term Insurance Plan

What Is the Correct Age to Buy Term Insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance Basics You Should Know

Buying A Term Insurance Plan? Take These Factors into Account

Comparing Term Plans – What Should You Look Out For

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Individual Life Insurance vs. Group Term Life Insurance

While Buying Term Insurance Compare Features, Not Just Premiums

What Should Be The Duration Of Your Term Plan in India?

What Happens if you Hide Facts in your Term Insurance?

Can I Extend the Tenure of My Term Insurance Plan?

Why Should You Buy Term Insurance in 2022?

Term Plans are Definitely Cheaper than You Think!

All about Online Income Tax Calculator

Steps on How to Buy Term Insurance Online

Can I Get Term Insurance on Behalf of My Spouse?

What All Documents Required For Term Insurance In India?

How Much Cover Should I Take In A Term Plan?

Do I Need to Give a Medical Test for Term Insurance in India?

Does Term Insurance Cover Accidental Death?

Insuring Against Accidents with an Accidental Death Insurance Rider

10-Year Term Life Insurance Policy - Explained in Detail

Eligibility Criteria for Buying Term Insurance in India

How Much Term Life Insurance Cover Do I Need?

How To Choose the Right Sum Assured Under a Term Plan?

What Types of Deaths Are Covered in a Term Insurance Plan?

5 Things To Consider While Buying Term Insurance Plan

Tax Benefits of Term Insurance in India

Importance of Term Insurance at Every Stage of Your Life

Zero Cost Term Insurance Plan: What is & Should you buy it?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Is ₹1 Crore Term Insurance Good Enough Cover?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

6 Reasons That Make Term Insurance a Must Buy

Why Should You Not Take A Term Plan Without Medical Test in India?

Planning For Children's Future

Advantages & Disadvantages of Term Insurance in India

Make Your Online Term Plan Your Familys Monthly Payout

Which Death Type Does Your Term Plan Not Cover?

How To Calculate The Amount Of Term Life Insurance You Need?

Advantages of Buying Term Insurance in Your 50s

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why You Must Include In Your Financial Planning?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

8 Benefits of Term Insurance You Should Know

Term Insurance With Riders In India

Is term Insurance Needed for People With No Dependents?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Is There Any Tax Benefit on Term Insurance?

Why Should You Add a Rider to a Term Insurance Plan?

Best Investment Plans for Children - Secure Your Child's Future

Insuring Against Disability With Disability Insurance Rider

All About Term Insurance Inbuilt Coverage

Can I Make Changes to My Term Insurance Policy Post Purchase?

5 Benefits of Early Retirement Planning

Should you buy a Renewable Term Life Policy?

Term Insurance Plans and Policies for Smokers

8 Types of Death not covered in Term Insurance Plan

Choosing Riders for Insurance Plans

Should You Have Multiple Term Life Insurance Policies?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Term Insurance Calculator - Everythng You Need To Know

Can Term Insurance Plans Be Purchased As A Gift?

5 Term Insurance Benefits for Single Women

Why Buy Term Insurance Plan With a High Cover?

Increasing Term Insurance and Riders

Term Life Insurance Plan for Smokers vs Non-Smokers

What are the Documents Required for Term Insurance Plan?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Understanding Term Insurance Riders

Different Types of Premiums in Term Insurance?

Cost of Term Insurance Likely to Increase Soon

How to Surrender Term Life Insurance When You Have No Liabilities?

Everything About Claim Settlement Ratio for Term Insurance

Can Senior Citizens Avail Term Insurance?

9 Point Guide on how to File Income Tax Return Online

Know How to Invest at Every Age for Larger Returns

4 Reasons Why You Need Critical Illness Cover

What Are Insurance Riders and How to Choose Them in a Term Plan?

Reasons You Need Term Insurance Plan as a Self-Employed Person

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

What are incremental term insurance plans?

Insuring yourself against Ill Health with a Critical Illness Rider

Do Beneficiaries Pay Taxes on Term Insurance?

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

3 Things to Consider When Buying Term Insurance, If You are Single

Why Should New Parents Buy Term Life Insurance?

Top 3 Reasons Why You Should Buy A Term Plan Now

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

How To Choose the Right Term Insurance Plan?

Why Buy Term Insurance Even at Rising Rates?

How do I Calculate My Term Insurance Premium

Difference Between Term Insurance and Endowment Plan

What Is a Renewable Term Insurance Policy?

What is Term Insurance? Term Plan Meaning and Definition

Form 16, Form 16A, and Form 16B?

Insuring Protection Against Death With Death Insurance Rider

Should you have more than one nominee in your term insurance?

6 Types of Death not covered in Term Insurance Plan

How Does A Term Life Insurance Work in India?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Why 1 Cr Term Plan Is Necessary For Family?

Calculating Term Insurance Premium

Term Insurance with Critical Illness

Why should single women purchase term life insurance?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

What is Critical Illness Policy?

Why Term Plan Should Be The First Step To Securing Your Future?

Planning For Son or Daughter's Wedding

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

What is a short term insurance policy?

Endowment Plans vs Term Plans: Understanding the difference