How Should You Insure Yourself With A Term Insurance Plan Before The Third Wave Covid-19?

What is the Right Time to Buy Term Plan?

Well, the answer to this question is ‘today’. Yes, term insurance is need of the hour. The current situation has once again brought back the panic and anxiety among all. People are keen to opt for a robust financial plan. A plan that can shield one’s financial liabilities in case he/she is not around loved ones or family members. An insurance plan that can provide mental satisfaction to an individual that his/her family will not have to suffer financial crises in case of any unfortunate circumstance. 

The best solution to deal with such situations is a life insurance policy that offers pure protection, and that is Term Plan. 

Reasons to Buy Term Life Plan?

There are so many reasons for buying a term insurance plan, and some of these are:

• When One Has Dependents to Take Care: If one has financial liabilities and dependents to take care of, buying a term insurance plan becomes pivotal, especially in the current unprecedented times. 
• To Take Care of the Financial Requirements of Policyholder's Family: The way a term insurance policy protects the financial needs of the policyholder’s family in his/her absence is the main reason for the popularity of this product. 
• Low Premiums: In a term insurance policy, one has to pay a low premium as compared to other life insurance products available in the market. Moreover, one has to pay these premiums for a pre-defined term like 30 years, 40 years, etc. 
• Large Sum Assured: One gets a large cover amount called a sum assured against low premiums. If the insured dies within the policy tenure, the financial dependents get the entire sum assured as a policy payout. They can use this amount to take care of their day-to-day expenses or important one-time expenses such as a child's marriage, education, or retirement planning of the spouse. 
• Need of the Hour: So, the necessity to buy term insurance that covers death due to COVID-19 can also not be ignored especially when our country is going through such tough times wherein the third wave is strongly predicted. During the first wave of this pandemic, the virus was largely affecting the old aged people and those with comorbidities. However, in the second wave, it was also affecting the people of every age group irrespective of the comorbidities. Therefore, after seeing such a situation wherein the coronavirus has proved to be fatal in every age group, buying a term insurance plan is the need of the hour. 

However, before buying a term insurance plan, one must consider the following factors:

Factors to Consider While Buying a Term Insurance

The second wave of COVID-19 was hitting people of almost all age groups. Moreover, it was observed that the younger people were also getting seriously affected. This makes us realize that buying a term insurance plan for people of all age groups is important. So, before buying a term insurance plan, one must consider the following factors:

• Opt for Adequate Sum Assured: The sum assured that one must consider for a term insurance plan should be ten times his/her yearly income. For instance, if one’s annual income is Rs. 10lakhs, then he/she must opt for at least Rs. 1 Crore sum assured. However, it depends on one's age and lifestyle as well. So, if one is married, has children, and falls in the age group of 25-35 years, then a sum assured equal to 20 times of his/her annual income is all that is recommended. After one reaches the age group of 35 years to 45 years, he/she can opt for a sum assured, which is 15 times annual income. 
• Compare and Purchase Online: The outbreak of COVID-19 has introduced us to a new term, social distancing. Less contact with people and maintaining a safe distance control the spread of this deadly virus. This has also moved people to online purchases. We all buy almost everything online, and the same goes for insurance policies. If one purchases a term insurance plan online, he/she may get a better deal. Moreover, a person can easily compare different term plans online and can get the best price as there is no middle-man involved. 
• Go for a Term Plan that Offers High Coverage at Affordable Price: One good thing about this time is the affordability of term insurance plans. Today a term insurance policy of Rs. 1 Crore sum assured is easily available for as low as Rs. 800/ month. 

Learning from the past is all that is needed in this current time of the pandemic. The second wave of coronavirus has taught us to be prepared for the worst by staying positive. Therefore, the experts suggest buying a term insurance policy, especially for those who are the sole breadwinners of their family. 

Summing It Up!

None of us can predict our future, and in such an unpredictable time, term insurance is the best protection that one can give to his/her loved ones. A term insurance plan with an adequate sum assured can provide financial support to one’s family in adverse situations that the current pandemic or other unfortunate events may lead to.