Spending habits of Indians have changed drastically within a year due to the Covid-19 pandemic. Most Indians are now saving more to cope with the increasing expenses of health emergencies and unprecedented lockdowns. This has created a need to buy the best life insurance plan, as they act as financial security for families.
Four Reasons to Buy Life Insurance Plan During the Pandemic
Is it good to buy a life insurance plan? The short answer is yes as life insurance policy can cover your medical emergencies including Covid-19. When you buy a life insurance, you secure your family's future. You can rest assured that the interests of your loved ones are protected even after you are gone.
Here are 4 reasons why you should buy a life insurance during the pandemic:
1. Financial cushion for family
Financial security is the biggest benefit of buying life insurance during the pandemic. It acts as a cushion that your family can rely on during tough times. Moreover, investing in life insurance helps you learn how to save more. Instead of letting your money stew in the bank, you can make it grow. Life insurance during the pandemic can be a lifesaver. It can save your family from any outstanding debts, financial difficulties, and medical emergencies.
Anyone can buy a life insurance policy today. If you're in your twenties, consider starting early. The pandemic has taught us that life is too uncertain to be taken for granted. Hence, having an amount saved is a good place to start your financial planning.
2. Get additional tax benefits
Tax benefits are an additional benefit of buying life insurance policies. They act as an extra savings instrument and can potentially reduce your expenses. Finding a suitable life insurance policy can help you save on tax, and helps support your family in the future.
3. Covers medical emergencies including Covid-19
A very obvious reason to buy life insurance during the pandemic is to cover medical expenses. Covering medical expenses is now more important than ever. Insurance companies have also included the clause of Covid-19 to help the families of the affected.
4. Smile through uncertainties
Imagine losing your entire savings during the Covid-19 pandemic. Unfortunately, this is the harsh reality of the economy in India. The global lockdown has created a crisis and depleted the savings of the middle class. This has boosted the need for having a life insurance policy which can help tide things over for the family. Having a life insurance cover would reduce the financial burden. Life insurance policies help with the uncertainties of the pandemic.
Life Insurance Plans to Buy during Pandemic
Buying life insurance during the pandemic requires careful research. Your budget is more important now, and there are medical emergencies to consider. Canara HSBC Oriental Bank of Commerce Life Insurance provides flexible options for the Indian market which also covers the Covid-19 pandemic. The low premium options and guaranteed returns make these options a very useful financial instrument during the Covid-19 pandemic:
1. Invest 4G
Invest 4G is a ULIP or Unit Linked Individual Life Insurance Savings Plan. The ULIP plan is customizable and can be changed as per your financial goals. The plan comes with the flexibility of paying a single lump-sum premium or for a fixed tenure. The deducted mortality charges are added to your fund value after maturity. The ULIP plan is a flexible choice for the pandemic. It also diversifies your portfolio and protects the family after the death of the policyholder.
2. Guaranteed Savings Plan
It has three plan options: guaranteed income, guaranteed long-term income and guaranteed life-long income. This plan provides a life cover for your entire term while you pay premiums for a limited tenure. It offers guaranteed benefit, which you can receive after maturity if you have paid all premiums. It also offers tax benefits under section 80C and gives you assured loyalty additions.
Learn more about Guaranteed Savings Plan.
3. iSelect Star Term Plan
iSelect Star Term Plan can cover your spouse and has a limited premium payment option. Moreover, you get an increasing sum at an affordable price. Moreover, Canara HSBC Oriental Bank Of Commerce Life Insurance also gives you multiple payment options. Policyholders can enjoy additional benefits like Accidental Death Benefit, Child Support Benefit, Accidental Total, and Permanent Disability Benefit.
The bottom line is that buying life insurance during the pandemic can safeguard your family’s interests. It can act as a nest egg for the family to fall back on, especially during the Covid-19 pandemic. Moreover, life insurance plans are considered to be smart financial planning as they have tax benefits. You can avail the money in case of medical emergencies, and help secure the lives of your loved ones.