Is Buying a Term Plan Enough During COVID Crisis?

If there is one thing that all of us can agree with right now, it is the unpredictability of life. The developments of 2020 made it glaringly apparent that we are vulnerable to several threats in the environment. In such a scenario, organizing your finances becomes a priority so that you can meet the expenses during an unexpected crisis.

While you cannot eliminate the threats to your life, you can protect your family from the consequences of it. Finding the best term insurance plan for your financial profile allows you to create a support system for the future. There are multiple insurance products available today, but the best term insurance plan is an uncomplicated option to secure a substantial corpus.

Such decisions have a significant bearing on your finances in the present as well as the future. If you have plans to buy the best term insurance plan, it will help you immensely if you first understand what is term plan and its importance in detail.

Importance of Term Plan

Each of us looks for financial security in life since it takes away a huge burden off our shoulders. In terms of the COVID-19 pandemic, it is even more crucial to protect your finances. Unfortunately, not many of us know how the best term life insurance policy can help in this matter.

When you have a steady income source, investing in the best term insurance plan can prove to be the best financial decision of your life. It is because it ensures that your family’s needs will be met even in your absence. It will help them maintain the standard of their lifestyle and not depend on anyone else for their survival.

The COVID-19 crisis only made the need for the best term insurance plan even more urgent. Currently, the Indian life insurance market is forecast to have a $92.1 bn value, a 27.2% increase since 2017. When the best term insurance plan protects more people, the financial situation of Indian families will improve considerably.

Most insurance companies rose to meet the pandemic`s immediate challenges by offering a COVID rider to their customers. Let’s discuss how you can create the best term life insurance policy in the middle of a health crisis.

COVID-19 Rider

The purpose of the best term insurance plan is to protect your livelihood, assets and safeguard your future earnings. The need for such a financial support system became even more pressing in the past few months. For this purpose, insurance providers are offering a COVID-19 rider to manage your financial decisions efficiently during these tough times.

With the country witnessing an alarming number of deaths in a short span, the importance of a COVID-19 rider is unavoidable. It can enhance the benefits of the best term insurance plan that you purchase and better suit the requirements of the present. For instance, the COVID19 One Year Term Rider by Max Life Insurance offers additional protection to its policyholders in the form of various benefits.

Here are some ways in which such a rider can strengthen the best term insurance plan for you:

1.        Death & Diagnosis Benefits

The best term insurance plan with a COVID rider provides the policyholder with death and diagnosis benefits. Consider the earlier mentioned example of Max Life Insurance, which pays 20% of the sum assured to the policyholder upon diagnosis of the Coronavirus.

The fixed lump sum amount can help meet the medical expenses incurred during the treatment. Similarly, the death benefit offered by the best term insurance plan in this situation includes payment of 100% of the sum assured to the dependents.

2.      Protecting Family’s Needs

When a family member passes away unexpectedly, it is an incredibly difficult time for everyone. If you are the breadwinner of the family, you must evaluate the financial needs of your family and invest in the best term insurance plan in time.

Having the best term insurance plan with a rider in place will help them live a comfortable life in emotionally trying times. They will not have to compromise on their life goals because of financial burdens in the middle of a global pandemic.

3.      Tax Benefits

If you are a hard-working individual, you understand the importance of tax benefits perfectly well. Tax deductions helps you saves a substantial amount of money in the long run. The tax benefits of the best term insurance plan extend further when you add a COVID rider to your policy.

During uncertain times like this, it is favorable to take precautions and maximize the benefits of the best term life insurance policy. Adding a COVID rider to your policy now may save you from tremendous financial trouble in the future. Hence, you must make informed and wise financial decisions and put together the best term insurance plan.

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