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How Important Is Life Insurance In The Current Scenario?

Updated On Aug 21, 2021

Keeping the current scenario in mind, where COVID-19 has shook the entire world, it is necessary to have a risk cover. Life is very unpredictable and a person should always have a plan to create financial security for his/her family members in case something unforeseen takes place. As the second wave of the ongoing pandemic has damaged households of people all around the world, the third wave is anticipated to be more deadly. In such difficult times one must have a risk cover or life insurance policy to create financial security for your loved ones.

Life insurance provides a death benefit to the beneficiary, in case an unpredictable event takes place, such as sudden demise of the life assured during the policy tenure. Knowing the impact of the disease or deaths caused by COVID-19 in the last 2 years, people are afraid and are more inclined towards life insurance for financial security of their loved ones in their absence. India has seen a spike of investment in the life insurance sector. Here’s why you should know how important life insurance is in the current scenario. 

How Important Is Life Insurance In The Current Scenario?

Following are the reasons which makes life insurance necessary keeping the current scenario in mind:

  • Lack of Liquid Assets

    In India there are still a lot of people who are unemployed which has resulted in a cash crunch, leading to calculation of non essential expenses. With the current pandemic scenario there is an increase in concern about the treatment expense and hospital bills in case a needs to be hospitalised for the treatment of the disease. People are uncertain about their job security, given the unstable economic condition, cost cutting etc. which is worrisome for the working class. This has triggered the people more towards purchasing a life insurance plan for themselves and their dependents. 

Must read: Can I Add A Rider To An Existing Life Insurance Policy?    

  • Long Term Financial Protection

    During consecutive lockdowns people started taking out from their savings to meet their daily expenses. The tradition to have financial security for unexpected circumstances is not uncommon in India, which has resulted in an increase in term and life insurance products. It is advised to purchase such products at an early age since age is a major factor considered in premium calculation, when purchased at an early age the premiums are reasonably low. These plans create financial security for the family of the life assured during unfortunate circumstances such as a sudden demise of the life assured due to COVID-19 .
  • Single Insurance Plan for the Family 

    A person can always opt for a group term insurance plan under which he/she can add family members in a single term plan. Unlike an individual policy a group term insurance plan allows the sum assured to be shared between all the assured members. 

To Conclude

COVID-19 has impacted many people's lives all over the world. Knowing the impact of the disease one should have a risk cover of life insurance policy to provide financial protection to their family in difficult times. 

Also read 

Understanding The Role Of A Nominee In Life Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.    

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