As the world continues to battle against the COVID-19 pandemic and the uncertainty that surrounds it, concerns are arising around mitigating the adverse impact of the virus. In light of this situation, India, with its 1.38 billion people, sees a major problem of a vague financial future. The country has had a life insurance penetration of only 2.74% till 2 years ago and the life insurance industry is expected to grow at a rate of 12% to 15% annually in the coming years. This may be a good time to consider investing in life insurance policies which would help in curbing your anxiety around financial protection of yourself and your family.
If you are contemplating an investment in a good and comprehensive life insurance policy in current times, here is a useful guide for you:
Appropriate Cover: Insurance providers in India offer a wide range of sum assured, starting from tens of thousands to even a crore. While choosing the best coronavirus insurance policy, try to gauge if the cover amount will be sufficient for treatment-related expenses or will it help in supporting the family in case of an untimely death of the life insured. You can consider various factors such as the number of dependents, open liabilities, present income, etc. while estimating the ideal cover requirement.
Reasonable Premiums: People in high-risk areas require Covid-19 insurance plans. However, the impact on the economy has significantly affected the income of individuals and therefore, a cover with high premiums may not be an ideal choice. Look for a good balance between the cover value and premium affordability. While buying a good life insurance policy with appropriate cover for Covid-19, make sure that it doesn’t end up being a pinch to the pocket.
Easy Process: An important point to check while selecting the best COVID insurance policy is the ease of application and smoothness of claims process. Both should be hassle-free and should be able to purchase a policy in minimum time by following some easy steps. Also, the claims procedure must be hassle-free, seamless, and demand minimum documentation to avoid undue stress upon the affected family members during difficult times.
Insurance Provider’s Reputation: A basic check while buying coronavirus insurance should also include verifying the insurance provider’s credibility. Learn about the claim settlement process and solvency ratios of the insurance provider. While the settlement process helps in gauging the reliability of the insurance company, the solvency ratio tells if the insurance provider is financially sound enough to pay the claims. Since there may be multiple claims made during these difficult times, both these aspects are important to consider.
Term Insurance Plans Online: Online Term insurance plans protect the policyholder’s family for a pre-decided term as per the premium payment made. In case of an untimely death or total disability of the life insured (as per the terms of the policy) the family members mentioned in the policy are paid the total sum assured. In case the policyholder survives through the policy period, no benefit will be paid. This type of online term insurance cover is ideal for unprecedented times like Covid-19. While it may not be easy to plan on such life covers, it makes sense to take practical decisions around this. Due to Covid-19, purchasing a term insurance plan, which also acts as an insurance cover for Covid, is a smart choice.
Seamless Customer Service: To choose an ideal COVID insurance, opt for an insurance provider who offers positive customer service. Go through various online reviews and try to connect with the executives to get a feel of quality customer care. Try and engage with an insurance provider who offers exemplary customer service and has fast grievance redressal mechanisms specifically designed for Covid-19.
Does Your Life Insurance Policy Meet These Requirements?
While purchasing a life insurance policy, ensure that it is designed to protect and secure you financially. Every policyholder should try to maintain certain basic criteria for the policy so that it can be used when a sudden need arises.
Thoroughly Evaluate the Policy: You should check the risk cover needs and personal financial goals before deciding on an insurance policy. Both should be in complete alignment with what the policy has to offer.
Pay Premiums on Time to Keep Policy Active: Making all premium payments promptly is important to ensure that the policy does not get discontinued. A policy cover has to be in an active state to ensure that the life insurance claim is considered in case of an eventuality.
Keep the Family Informed About Policy: Family members should be made aware of all relevant insurance policies along with the complete claim process. Ignoring this aspect could result in mental agony for the family members and they could be denied the benefits that you would have meticulously planned for.
Give a Clear Picture of Personal Health to Insurer: All existing personal health conditions along with any prevailing COVID-19 status should be appropriately declared to the insurer. Any misrepresentation of facts and hiding of health conditions can significantly affect the status of the claims.
Evaluate the Terms and Conditions Carefully: A life insurance meant for Covid-19 would normally cover death caused due to it. However, one must study all the exclusions of the policy apart from carefully studying the terms and conditions. If you are buying a critical illness cover, ensure that it covers critical illness arising from Covid-19.
Bottom Line
The advent of the coronavirus pandemic has made non-believers seek life insurance covers to secure their future. The situation has given rise to several policy covers that can offer financial protection and subsequent metal relief to investors.
More and more Indians are starting to consider investing in insurance policies that can protect their family’s financial future in case they are impacted by Covid-19.