A term insurance is a critical investment to secure your family financial future. It is even more significant during the global crisis like the COVID-19 pandemic. Read on to know about the importance of term plan during the COVID-19.
Since the start of 2020, the world has witness one of its greatest healthcare crisis, COVID-19 pandemic. The outbreak of the infection has shaken the entire world within a few months. It has affected millions of lives world over and has taken many more.
In such a time of crisis, people have realised the importance of long-term savings and buying a term insurance cover. Research suggests that the number of term insurance buyers have increased significantly since the start of the pandemic. People are taking a term cover to protect their family’s financial future against the uncertainties of the infection.
During these tough times, the need for a term plan is not just limited to its benefits but also has become a necessity. If you are still wondering why term insurance necessary during the COVID-19 crisis, here are a few important factors you must be aware of.
Shortage of liquid assets
As the pandemic continues to wreak havoc around the world and with the second wave proving to be more dangerous than the first one and with the third wave being imminent, many people worldwide have lost their jobs. People are struggling to earn a livelihood. This in turn has created a massive cash crunch among the people.
And with the threat of the COVID-19 infection looming large, one of the major concerns people have is about the health care expenses. You may have heard several stories of hospitals charging a huge amount for COVID-19 treatment.
For people who are employed, their major concern is job security, as losing the job will directly affect the economic condition. This is one of the primary reasons why many people are investing in a robust term insurance policy to secure the financial future of their dependents.
Long-term financial security
The nationwide lockdown implemented by the government to curb the COVID-19 infection spread has affected people across all social groups and its impact cannot be overlooked. As the lockdown continues to extend and the business remain shut, people are left with no option but to dig their savings to meet the daily expenses.
At such crucial time, the insurance business gained spotlight. When it comes to buying a term plan, age is a critical factor as it has a direct impact on the premium amount. The term insurance premiums are much affordable than other types of life insurance policies. You can a buy a term insurance for 15 years or more and ensure financial security to your family members against the uncertainties of life.
As the lockdown continues and stepping out of the home is risky, you can buy a policy easily online. With most of the reputed insurance companies offering online services, buying a plan has become easier than ever before. You can easily compare the different plans from different insurers and choose the best plan that perfectly suits your budget and requirements. You can even customise the plan, and add riders to cover specific risks.
Term Insurance and COVID-19 risk
In the current scenario where everyone is looking for financial stability, buying a term plan can guarantee financial safety to your family members. In the event of your untimely demise during the policy period, your family will receive the death benefit.