Does your Term Insurance plan cover the Death Due to Covid-19?

Term Insurance Plan

These days Covid-19 is a serious health threat to our society. As we all are aware of the fact that every minute, we saw some new statistics related to the coronavirus. A lot of people are dying every day due to this deadly virus. Previously, the government has announced a free test for suspected patients. But now you have to pay for the COVID-19 test. So, it becomes a necessity to purchase a Term Insurance Plan to reduce unexpected financial burdens. Further think about, if you found positive? Do you have this much savings to pay your medical expenses? At this critical time, a Term Insurance Plan that covers the medical expenses of your corona treatment is just a blessing.

What is the Term Plan?

If you are already a policyholder and thinking whether your current policy is adequate to provide coverage. Life insurance policy is to provide financial support in case of sudden demise. You will get the promised sum insured in case you died due to Covid-19 or any other disease. 

However, if you are the one who has still not opted for any term insurance plan then this is the high time to purchase one for you as well as for your family. Of course, you have to go through certain medical tests to purchase a plan at this critical time. There is no doubt that your family will receive the entire death benefit in the policy if you are found not infected in the tests. 

Whereas if you are already infectious or underlying medical conditions. Then the company will decide whether they will issue you a policy or not. It is also possible that they keep your policy on hold or deny you.

Currently, we have no cure for this disease so this policy might be a little expensive for you. But overall if we think about security then there is no loss in taking an advance step for the protection of our loved ones.

Things to remember while purchasing a term Insurance plan for Covid-19:

  • Term Insurance plans provide a high sum insured for lower premiums.
  • Term insurance plans provided by different insurance companies have diverse benefits. So, make sure to check the policy documents diligently to avoid any misconceptions.
  • If you have already purchased a life insurance policy or term insurance plan then you have an additional benefit. You don’t have to wait for the policy approval in case you find Covid-19 positive in the future.
  • You can also purchase a Term insurance policy to protect your family against unexpected financial risks after you.
  • If you won’t take any term insurance plan then your family has to rely on the other means to surge through these uncertain times.

How To Know Which Is The Best Term Insurance Plan?

Best Term Insurance Plan

Term Insurance is a type of life insurance that provides the insured with financial protection (death benefit) in case of death. Protection is only available for a limited time. The Best Term Insurance plan offers the highest life insurance with low premiums.

In other words, Term Insurance can be defined as a type of insurance purchased for a specified period or a certain number of years. The main distinguishing feature of Term Insurance is that it is cheaper than other types of life insurance because it has no cash value. The policy makes sense only if the policyholder dies within the insurance period.

Almost all major insurance provided like Policybazaar offer the Best Term Insurance plan. These are valid for different terms such as 10 years, 20 years, 30 years. The most important point in Term Insurance is that policy is an integrated function of most of these policies, regardless of the health status converted to permanent life insurance.

Why you should have a Term insurance plan?

Life is unpredictable for a long time, and insecurities can make you feel emotional, financially, and physically. Because no one can control his death and nobody can predict it. The death of the family’s livelihood can lead to devastating confusion in the life of the family member.

To find solutions to these problems, the Term insurance plan plays an important role in your life. Besides, Insurance plans are a great way to build a financial safety net, and risk is the easiest and cheapest form of life insurance. This will help your family resolve your loans and pay certain requirements while you are away. The death benefit is paid only to the beneficiary or the applicant after the death of the insured. In simple terms, if the insured person dies after the policy expires, the death benefit is zero.

What is a term insurance plan? And how it works!

Term Insurance can be considered as one of the most traditional insurance methods. With most Term Insurances, the premium increases slightly over time. The term insurance plan serves to reduce monetary value over the years. It also includes an increased risk of death and additional taxes for a longer insurance period.

Some basic terms of Best Term Insurance plan:
  1. Purchasing Policy: You don’t have to reserve tens of thousands of rupees every year to take out Term Insurance. Most insurance policies offer you up to 1 Rs insurance for only 10,000 Rs premium.
  2. Protection of the policy: As with other insurance policies, you pay the premium of these policies as often as you wish. These bonuses can be paid every month, quarterly, 6 months, or once a year.
  3. Use the advantages: Term Insurance does not usually offer the necessary benefits. Term Insurance plans generally do not include overdue payments other than Term Insurance plans. Their main goal is to provide life insurance coverage, and that’s exactly what they do. In the event of the policyholder’s death, the policyholder receives the guaranteed amount.

How it works is one reason why you see insurers as pure protection plans for these plans. There are no frills associated with the plan. You pay the premium and if something happens to you, you will receive a fixed amount.

How would you choose the Best Term Insurance plan for you?

Insurance providers and collectors like Policybazaar offer Term Insurance calculators on their websites to help you analyze which plan is best for you. Security is considered the cheapest and cheapest insurance policy. Life insurance policies play an important role in your everyday living. Term Insurance does not offer cash support, but in the event of unfortunate death, Term Insurance offers beneficiaries a significantly higher amount of insurance than other life insurance plans.

Some basic factors for choosing the Best Term Insurance plan:

  1. Human life value

The main reason to take out life insurance is to provide financial security to your relatives while you are away. In the absence of an insurance policy, they expect financial protection for their relatives.

  1. Cost

We all want a Term Insurance which is the cheapest from others. But that doesn’t mean they will provide you everything at those rates. Choose the cheapest run-time plans as they result in low premiums with the same upper limit. 

  1. Driver

The best risk for you is life insurance covering all aspects. One way to do this is through drivers. What is a driver? A driver is an add-on to the primary policy, which offers benefits beyond the policy under certain circumstances. The policy owner can add drivers to the program.

  1. Improved coverage

A feature of the insurer’s specific programs is its flexibility to develop life insurance policies at critical stages of the policyholder’s life. For example, an insured person can increase life insurance by 50% during marriage and 25% during parenting. This enables policyholders to start on a modest scale, improve coverage, and pay higher premiums as responsibilities increase.

  1. Convenience

You will find maximum innovation in life insurance in all Term insurance plan. First, the cost and thus the premium rate has dropped significantly and this process continues. Thanks to the Internet, it is now easier to purchase a program.

Which one is better Term insurance plan or endowment plan?

A major difference between a term insurance plan and an endowment plan is the type of plan. The term insurance plan offers simple life insurance. In other words, an endowment plan saves money for the future. The program does not offer such long-term savings. 

When it comes to the Term insurance plan, most people are aware that both risk insurance and endowment plans offer life insurance. However, both respond to different needs. The schedules meet the protection requirements, while the basic schedules meet the recording requirements. Once you’ve identified the differences, features, and needs for each life insurance category, you can choose the right plan for yourself. These factors can help you find the best risk insurance or make a comparative analysis of the risk plan based on an endowment plan.

Six Important Lessons For Term Life Insurance buyers

Term Insurance Policy

In today’s times, it has become important to take care of the finances and make an effective financial plan. For meeting all the financial requirements, you need to be very careful about your savings and earnings. This is one of the reasons that have made people look for some sort of financial instruments through which they can get good returns. Term insurance is the best financial instrument that will help you with this. Saying wouldn’t be wrong that life is so uncertain and no one knows what will happen to the next second. Therefore, it is always advised to buy a term life insurance no matter the financial fit you are. It will keep your loved ones financially protected even after you are not there with them.

What term insurance is all about?

Term plans not only offer the benefits of financial protection but also provide a tax benefit. With a Term life insurance, you can help your family to stay financially independent in case of the demise of the insured person. Always remember that buying a term plan is the best financial strategy for the future financial requirements of your family and loved ones.  The best part is that this sort of insurance can be considered as a supplement income after retirement. So, there are several reasons for which you should buy a term plan for yourself. 

There is no doubt that every person is not an insurance expert. So, you need to learn a few lessons as an insurance buyer. These lessons will help you to get the right Term insurance policy. 

6 lessons to consider before buying a term plan

Choice of the perfect plan

If you don’t have any idea of the term policies then you might seem confusing because of various options. The availability of wide options is of course good for the insurance buyers. Are you looking for a solo earner plan? Do you want to cover your spouse in the insurance? Apart from these, several things will come to your mind whenever you are buying a term plan. The thing that you need to do is to choose an ideal plan that fulfills all your requirements. In short, the insurance buyer of term life policy needs to analyze every bit and aspect carefully. 

Besides this, you must also decide the cover amount for the insurance. For this, you will need to estimate your annual income, current expenses, and future expenses to take care of the financial needs of the family.

Focus on the right reason for buying

Why we tend to buy the best term insurance plan? Every insurance buyer will have different reasons for buying it. But, you need to look at the options and then buy for the right reason. The important thing is that you are buying a term policy for a specific purpose of covering your family. Everyone wants to cover the family protected after the policyholder is gone. Buying this insurance policy for just tax benefits cannot be the main reason for your decision. 

Consider the tenure of Policy

Many times, policy buyers ask about the tenure of the policy. The policy period of the term insurance should be enough to give the family some time to become financially independent. In practical ways, the tenure needs to be a difference in the retirement age and your current age. If you will look at the terms’ plans of the different insurer, you will see that they offer high life insurance cover up to the age of 75.

Selection of add-ons wisely

There is the availability of some add-ons with the best term insurance plan. You should not just buy it because it is appearing good to you. As a term plan buyer, you need to go for some research and find out about the benefits. Some of the add-ons that you will get are:

  • A premium waiver on disability: If the insured person becomes permanently disabled in the policy tenure then the policy premiums for future would be waived off.
  • Additional cover for accidental death: If the policyholder met with an accident and there is demise during the policy tenure then the amount would be paid to the beneficiary in addition to the basic sum assured. 
  • A premium waiver on critical illness: The future premiums for the policy would be waived off if the insured person is diagnosed with any critical illnesses. The critical illnesses that are mentioned in the policy will only be considered for waiving off.
  • Critical illness cover: If the policyholder is having any critical illness then a lump sum amount will be paid to the policyholder.
Seek expert’s advice and suggestions

Sometimes, without proper knowledge of term policies, we end up buying a plan that is meaningless for us. What is term insurance? How to know about the benefits? What should be the cover amount? These are a few questions that can confuse you. Therefore, you must seek expert’s guidance and suggestions. If anyone in your relatives or friends has bought a term plan then consult with them. Asking an insurance agent about the term plans will also help you with this. 

Always check the insurer online and make a comparison

One of the lessons that you must keep in mind is checking about the insurers of term insurance. The best way of doing so is by going online and checking the credentials of the insurer. In addition to this, you must focus on the solvency ratio and assets under management. Various insurance companies provide the feature of an online term insurance calculator. With this, the policy buyer can accurately calculate and compare the term plans.

I hope this term insurance guide is helpful for you. Stay in touch with us to get the best deals on various insurance policies.