The widespread of the coronavirus (COVID-19) pandemic has put millions of lives in danger throughout the world. It does not matter how careful you are; there are chances that you may be affected with COVID-19 sooner or later. The cases are rising significantly every day, and this is a big reason for concern. As numerous people have lost their lives due to the virus, it is time that you think about your family’s financial future if you are not around. One of the best ways to ensure their financial security in your absence is by buying a term insurance policy.
What is term insurance?
If you do not know what is term insurance, let us explain it. A term plan is a kind of life insurance policy, which provides high coverage at a low premium. Besides this, the amount paid towards the premium and the death benefit received by the nominee are tax-free as per Section 80C and Section 10 (10D) of the Income Tax Act, 1961.
Why buy term insurance during the COVID-19 pandemic
Here are a few advantages of investing in a term policy during these uncertain times:
1. High sum assured
In comparison to traditional life insurance policies, a term plan offers a higher sum assured. In case of any unfortunate incident before the policy’s expiry, the insurer is liable to pay the sum assured to your nominee. As the cover is high, it will help your family members to secure their financial well-being.
2. Deaths due to Covid-19
The number of active cases and demises due to the pandemic are increasing day-by-day. Do not put your life on stake by assuming that you will not be affected by the virus, or if you contract it, you will recover quickly. It is wise to be safe than sorry. Hence, it becomes essential to ensure that your dependents are financially self-reliant, as you do not know what the future holds.
3. Cost-effective premium
When compared to any other types of life insurance plans, the term policy premium is quite reasonable, and the plan offers a large sum assured. So, do not refrain from investing a small part of your income in a term plan during this turbulent phase.
4. Family’s monetary stability
A term plan secures the economic future of your family in case something unfortunate happens to you during the policy tenure. Your family members can utilize the sum assured received from the insurer to meet their financial needs, fulfill life goals, or repay your debts. As the coverage is high, your loved ones will not have to worry about money when you are not there to look after them.
5. Long-term security
Generally, most term plans have a minimum duration of ten years or more. You have an option to choose a term plan for a long period, like 30 years. So, if anything happens to you between during this time–frame, the insurer will have to pay the sum assured to the nominee.
6. Quick claim settlement process
One of the most important term insurance benefits is that such a policy comes with a fast claim settlement procedure. This ensures that once your nominee makes a claim, he or she will receive the sum assured at the earliest, that too without any hassles.
No one knows when they can get affected with COVID-19 and whether they will be able to survive this deadly virus or not. Therefore, you must avail of a term plan to secure your family’s financial protection in your absence without any further delay, particularly if you are the sole bread-winner. Such a plan will prove handy in case of an unfavorable circumstance.