Secure Your Life During These Unforeseeable Times!
Life comes with a lot of uncertainties, one of which is diseases. Life expectancy has been increasing and sometimes diseases hit people in their prime ages. Recently, there is a deadly flu pandemic spreading across the world causing a lot of deaths.
There isn’t much you can do to prevent getting infected however, there are ways to keep your family protected by having an insurance policy. For this reason, it is highly recommended that you take measures to protect your life by researching life insurance online from reputable companies.
Importance of Life Insurance in The Wake of Pandemic
- Assured Income
With the pandemic causing a lot of turmoil in our lives, it has become increasingly important to be prepared for uncertainties. In these uncertain times, life insurance is a powerful tool that helps you secure your future and those of your loved ones.
One key benefit offered by life insurance is guaranteed income – this ensures that you will continue to have a regular income even if you are unable to work for some time. This is useful if you have a loved one dependent on a fixed income for a specific period till they can be independent.
2. Life-Long Savings
It is vital to have a robust life cover in place that ensures your family is protected financially and continues to enjoy a high standard of living even though you are not there. The guaranteed lifelong income option ensures that you get a guaranteed income till you touch 99 years.
This is ideal if you have a family that is fully dependent on you or if you are the breadwinner. This option works like a fixed deposit that pays out an annual payout for the rest of your life. The older one gets the lesser their earning capacity becomes and this option ensures there are enough funds to live a comfortable life.
3. Maturity Proceeds
Life is unpredictable, and we can never be sure of what the future holds. However, with a life insurance policy, you can prepare yourself to face such uncertainties and cope better. With a life insurance policy, you have a choice between two options: savings component or maturity proceeds.
The maturity option ensures that you get a lump sum payout of your benefits at the time of your policy’s maturity. The savings component ensures that you get a fixed income at an uncertain time such as now when the world is facing a pandemic, so you can cope better.
4. Loan Availability
With the pandemic, the demand for liquidity has increased. It is better to borrow from your life insurance policy than from other sources. Life insurance policy loans are cheaper than personal loans. You get a loan with lower interest rates on your life insurance plan.
The cash value of your policy grows, even as you pay the loan installments. This is because it accrues interest at a rate that is higher than the interest that you pay on the loan. In this way, you can access funds whenever needed and ensure long-term financial security at the same time.
5. Financial Planning
Life insurance is an important part of overall financial planning. It protects against any unforeseen events in life, such as death, disability, critical illness, loss of income, etc. The importance of life insurance grows as you progress through your life stages. Life stages refer to the multiple major stepping stones like marriage, childbirth, home purchase, retirement, etc. You can use life insurance plans to prepare for each of these life stages.
For example, term insurance for protection, child plan for child’s marriage and education, ULIP for building wealth, the pension plan for retirement, etc. if you do not have adequate life cover or protection against any unforeseen events in life then it can be difficult to maintain your lifestyle in case something untoward happens to you or your spouse.
6. Easy Settlements
It is a known fact that even the most well-planned budgets can come under strain in times of need. The financial burden on families can become overwhelming if they do not have enough savings to cover their expenses. And this is where a term insurance policy can provide relief.
It ensures that your family has sufficient funds to cover their daily needs, so they do not have to worry about how they will make ends meet. It is important to note that a claim settlement process in a pandemic situation may be different from a regular claim settlement process.
But if you plan, you can make things easier for yourself and save yourself some stress during this difficult time. You must also remember that insurers have certain processes in place for settling claims during such situations. In case of any queries or doubts, please read through the Terms & Conditions of your policy thoroughly before making any claims.
Current State of Life Insurance of India
Only 24.66% of the population in India is insured. The penetration of life insurance in India is one of the lowest in the world, and it has been consistently dropping over several years. The figure represents the total number of all Indians who had life insurance in India, not the number of people who were insured with adequate amounts of coverage.
The biggest reason for this is that Indians are not aware of the benefits of life insurance products. This is reflected in the low awareness of term plans among Indians. All this means Indian families are not adequately protected by insurance which should be given how important life and health are to each one of us and our families.
Bottom Line
To put it simply, getting life insurance coverage is an easy, affordable way to secure your family in the event of your untimely demise. It will cover funeral costs and other final expenses, prevent your loved ones from added financial strain and even pay a death benefit to those dependent on you financially.
Depending on your age and circumstances, life insurance of India can provide a sense of peace that you can’t put a price tag on. So, while the risk of a pandemic or any other unthinkable end always lingers, at least you’ve got some insurance on what matters most.
