How COVID-19 has Pushed People to Plan for Getting a Life Cover?

In the wake of the pandemic, people all over the world have started to take healthcare and their medical plans more seriously. COVID-19 has shown people that no matter how healthy their family is and even if they are in their prime years, anything is possible at any point in time. It becomes very pertinent to understand that protecting your life and that of your loved ones is the need of the hour.

COVID-19 has undoubtedly been one alarming wake-up call for people who haven’t yet taken steps to get a life cover. Life insurance plans are just what you need when you are thinking about buying a cover for yourself, your partner, and your family. While COVID-19 may be the reason more people are looking for the best life insurance plan, it can’t be the sole reason that determines what type of insurance suits them the most.

There are several life insurance plans like term plan, endowment plan, money back plan, retirement plan, and whole life insurance plan, to name a few. You can select from any of these types of life insurance plans available based on what suits your needs the most.

Why go for a life insurance plan?

Life insurance plan pays a lump sum amount to the applicant once their policy matures or upon their unfortunate death. Such insurance plans provide much-needed protection for your family, your partner, and cover yourself as well.

There are ample benefits of life insurance plans, and protecting the policyholder’s family is just one of them. It is a substantial financial burden on a family when they lose the breadwinner and can’t even make their day-to-day expenses.

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If the applicant has taken the best life insurance plan in times like these, then their family will be financially covered even in their absence. Apart from coverage, there are many benefits offered by a life insurance plan-

  1. Loan collateral: Many are still unaware of this, but yes, a life insurance plan can act as collateral for your loan. If you are opting for a loan from an NBFC or a bank, then based on the type of insurance policy you’ve opted for and the surrender value it holds, you can use it as collateral against your loan.
  2. Looking after business: Some life insurers also have separate provisions for business owners in their life insurance policies. If the policyholder passes away, his/her business partners can buy policyholders’ shareswithout any hassles.
  3. Payment discount: Insurers offer applicants the choice to pay their premiums annually, half-yearly, quarterly, or even every month. Usually, insurance companies provide specific discounts based on the premium paying period that the applicant chooses, and it is applicable in the insurer’s premium rate.
  4. Saving tax: As per the Income Tax Act, under Section 10(10D) and Section 80(C), life insurance policyholders can save tax. The premium you are paying for these policies can help you get a deduction from your taxable income.On the other hand, section 10(10D) offers tax exemption on the death benefit of your life insurance plan. All you need to do is to ensure that you pay your premium via netbanking, credit or debit card, and not making cash payments.

The best life insurance plan provides you with cover to protect your family, and helps you save tax and plan your finances well.

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Importance of life insurance plans in current times

There was a time when most insurance applicants did not belong to the millennial era, which seemed like the youth did not care about insurance. However, times are changing rapidly, and awareness about life insurance plans is also available at the touch of your fingertips. To top it all, the current pandemic situation has made the young generation consider buying alife insurance plan.

It seems like the unexpected pandemic has offered the much-needed wake-up call to everyone who still hasn’t given a thought to get a life cover for themselves. Be it COVID-19 or chronic diseases, rising stress, or simply lifestyle diseases, it is crucial that life insurance purchase should not be ignored.

At present, the world has seen a surge in the number of applications they receive for life insurance policies. Apart from all the ripping medical expenses, looking after family’s financial security has become the need of the hour, and what better than a life insurance plan to offer both financial protection and peace of mind. You can also look for term plans that cover COVID-related expenses as well through an additional rider. It’s time to take the required step and ensure utmost protection from life’s inevitable truths.