Published On : Fri, Aug 28th, 2020

How the COVID-19 Pandemic Re-Emphasizes the Need for Term Life Insurance


The COVID-19 pandemic shows no signs of slowing down, and it has brought the entire world to a standstill. In India, the number of affected people is rising every day, and it has led to a significant economic slowdown. Due to this, many people have lost their jobs, and many others are dreading the same fate. In this situation, you may certainly worry about your loved ones, especially if they are financially dependent on you.


If you are wondering how to ensure the comfort of your dear ones in case you cannot be there for them, buying a term life insurance policy can be an ideal solution.Today, you need to value a term plan as an essential investment towards the financial security of your dependents.


Importanceof aterm life insurance policy


Certainly, you may be aware of theincreasing number of deaths due to COVID-19. These are uncertain times, and it is wise to plan rather than to simply wait-and-watch how things turn out. The purpose of a term plan is to offer financial cover to your nominees in case of an unfortunate event. If you are married with children, your absence will put their future in jeopardy, as they will lose a loved one who is also their only source of monetary security. Even if you are unmarried, your dependent parents may need your financial support.


If you are not there for your family members, they will find it hard to maintain their standard of living. Additionally, they will have to take on the burden of your financial liabilities, like repaying any loan, which you did not settle. This is where a term plan can help. In case of an unfortunate event, your insurer will pay a lump sum to the nominees, ensuring their financial wellbeing.


Another great thing about buying the policy right now is that you can easily find an online term plan that meets your needs. Due to the lockdown and COVID-19 spread, it has become risky to visit any insurance office. However, most insurance companies in India are now offering online services. You can visit the website of your preferred insurer and apply for the policy online. This way, you will ensure a comfortable life for your loved ones without having to leave home.


Benefits of a term life insurance policy


A term plan offers many advantages, which make it one of the best life insurance policies. Some of these include:


  • Simple to understand


A term plan is a straightforward life policy. It is a pure life insurance plan that only offers death benefits. You do not have to worry about anything else other than paying the premium timely.


  • Affordable


As a basic term policy does not pay any maturity benefits, they are available at an economical cost. The price reduces further when you buy the policy online. This makes a term plan a value-for-money product.


  • Substantial cover


When compared to other life insurance policies, a term plan offers a much higher cover. In fact, you can get over 50 times higher life cover from a term plan in comparison to other policies in the same price range. This benefit ensures that your nominees will get a large lump sum that can keep them financially protected for many years.


  • Tax deductions


A term policyoffers tax benefits too, which make it an even more profitable investment. Under Section 80C of the Income Tax Act, 1961, you get a deduction up to INR 1.5 lakh on the premium paid towards the policy. Also, the sum assured that you receive from the term plan is tax-free as per Section 10 (10D) of the Act.


Now that you understand how a term plan can offer you peace of mind during this trying time, find a suitable policy right now. Online comparison of different term policies can help you find the best plan easily.