Should I get a Life Insurance during the Pandemic?
Life is uncertain as it is, and the Covid-19 pandemic has added more complexities to everyone’s life. As of end of 2021 October, the pandemic has claimed more than 4.5 lakhs lives in India.
In a time of uncertainty like this, the financial protection of your family becomes more important. If an unfortunate circumstance occurs where you have to leave them behind, they should have adequate financial support to deal with your absence and to stay financially afloat. This is where a life insurance plays an important part.
Life insurance is an insurance policy where you insure against the uncertainties of life. In a life insurance policy, if the policyholder passes away during the course of the insurance, the beneficiary will receive a financial aid, which is equal to the insured sum.
If the policyholder survives the term of the life insurance, they will get the insured amount at maturity.
Life insurance during the pandemic
As said above, the uncertainties of the pandemic make buying a life insurance a wise decision. Let’s see why
- Fight against the uncertainty – It’s been a long time since we have masked up, and even when science is doing its part to fight the virus, there is no guarantee on when the pandemic will end and normalcy will return. This uncertainty can be daunting, but a life insurance can help with it a little. Losing an earning member to the pandemic could prove to be devastating for a family. Here, with a life insurance policy, if something unfortunate happens, the family will have a financial protection to help them navigate the tough times and keep on living with an adequate financial cushion.
- Life insurance is a savings as well – Life insurance policies are not just insurance covers; they are a part of your savings too. Unlike in a term life insurance, you get your insured sum at the end of the maturity. This means that if you are subscribed to a life insurance plan, you are slowly growing your savings too. This could help you build your savings even if the pandemic has affected your job or income. If you are in dire need of money, you can withdraw from a life insurance plan and cash in the premium money. In this case, the insurance company could levy charges from you.
- Covers your debts and liabilities – If the pandemic, unfortunately, takes the life of the policyholder, a life insurance cover could cover their debts and liabilities, freeing the family from the same. If you are looking to save your family from the same if something very unfortunate happens to you, your cover should ideally cover all your debts, including loan amounts. There should ideally be enough insured sum to help your family financially even after clearing the debts.
- Peace of mind – There is nothing more important thanpeace of mind, especially in matters relating to your family’s safety and protection. Covid-19 pandemic could hinder this peace of mind in a lot of ways – you could be worried about your family’s health and if you are an earning member of the family, you could be worried about their financial stability if something unfortunate and unforeseen happens to you. A life insurance policy could help you with the second part. It will help you keep your family and loved ones financially safe even if you have to leave them behind.
What life insurance plan is best during the pandemic?
Pandemic or not, choosing a life insurance plan is highly reliant on your personal situations and preferences. There is no magic figure, but experts say that ideally, your life insurance cover should be at least six times your annual income plus the debts you have to repay.
For example, if your annual income is Rs.10 lakh and you have a home loan of about Rs.15 lakh, the least life cover you should have would be
Rs. 10 lakh X 6 plus debt of Rs.15 lakh = Rs.75 lakh.
This makes sure your family can pay off their debts and even after that, live a financially sound life. A life insurance calculator will help you calculate the premium according to the amount you want as life cover. You could also take the help of an insurance expert online through insurer websites.