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

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.