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How to insure yourself with term insurance amidst rising Covid-19 fear

In what we believe is the ‘second wave’ of COVID-19, India continued to report more than 4 lakh corona positive cases and over 3,500 death till recently – quite unfortunate yet important to note. The overall mortality rate of the country, which was once less than 1 percent, has increased drastically over the last few weeks.

What is more heart breaking is the fact that the rising mortality rate is not only because of the severe deadly virus but also because of the massive caseload, that has completely overwhelmed India’s healthcare system. And considering the current pace at which the cases are rising in India, the situation might take time to get back under control.

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Term Insurance – Need of the Hour
The current worrisome situation has once again generated a nationwide ripple of anxiety and panic and has brought back a keen emphasis on the urgent need for a robust financial plan. A plan that can shield the financial dependents of an individual from threats to not just lives but livelihoods as well. And the first and foremost element of comprehensive financial planning is a pure protection life insurance product – Term plan.

If you have financial dependents to care of and liabilities to pay, buying a term plan becomes pivotal, especially considering unprecedented times like these. The manner in which term insurance protects your family members in case of your sudden demise is the cardinal reason for the product’s immense popularity. Under a term insurance plan, you pay a very small amount of premium for a pre-defined period – say 30 to 50 years – against a large cover amount called sum assured. If the policyholder dies within the policy tenure, the financial dependents receive the entire cover amount as a payout that can be used to take care of daily lifestyle expenses and important one-time expenses like child’s education, marriage, and retirement planning of the spouse.

The importance of having a term plan that covers death due to COVID-19 as well cannot be ignored especially during tough times like these when the deadly virus is infecting everyone equally. During the early onset of the COVID-19 pandemic, it was being reported that the disease largely affects aged individuals or those with comorbidities. However, over the course of last few weeks, it was observed that the COVID-19 was affecting every age group and proved to be fatal in every age irrespective of comorbidity.

In fact, the numbers show that the ongoing second wave of the COVID-19 pandemic is hitting India’s workforce harder than ever before. In the last 2 months, younger people – aged between 20 and 45 – are getting seriously affected due to the virus and are being hospitalized with severe symptoms. This makes it all the more important for the young generation and especially the sole bread-winners of the family to ensure that they have term plans with adequate cover amount to protect the financial future of their loved ones.

Compare and Buy Online at Affordable Prices
To minimize contact, maintain social distancing norms and contain the spread of deadly coronavirus, people have moved to online purchase of almost everything these days. Similarly, customers can buy the term insurance online and in fact, term insurance plans available online are cheaper than offline plans many times. You can easily also buy a term plan through a telemedical process where a Doctor connects with you over a phone call asking health related questions many a times instead of physical medical tests. All that you need to do is provide a soft copy of your KYC and income documents to the insurer and make the payment online. Once you make the payment and the tele-medical/medical process is completed the proposal is put through verification/ underwriting process at the Insurer end and then if everything seems in line, the policy is issued.

Most importantly, the premiums paid against term insurance plans are far lower than any other type of insurance for the given extent of coverage/sum assured. For a 30-year old individual, a Rs 1 crore sum assured plan with coverage up to 70 years would cost Rs 800 – Rs 1,000 per month. In fact, the premiums of your term plan solely depend on your age, gender, smoking habits, health conditions apart from the basic parameters such as sum assured, policy/payment term chosen by you.

Conclusion
No one can ever predict the future. For an unpredictable future, a term life insurance policy is the best protection that you can give to your loved ones against any future financial risk that the coronavirus pandemic and other ill-fated events may lead to without any prior notice.

(By Sajja Praveen Chowdary, Head-Term Life Insurance, Policybazaar.com)

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