Everyone knows that life is full of uncertainties but these unprecedented times have emphasized that uncertainty is real and can strike pretty badly.
Ensuring financial security for the family should ideally be the top-most priority for any earning individual but it seems to be catching their attention now. However, many are financially strained in the current times with pay-cuts, job and business losses, less savings or excessive liabilities. Hence, the mental turmoil regarding whether or not to buy a life insurance policy now.
‘The best time was yesterday, the next best time is now’
A good idea is to start with a Term Plan. A Term Plan is a pure risk cover plan that provides a lump sum amount to the beneficiary in case of the unfortunate death of the life insured. Terms plans offer a sizable coverage at affordable premiums. So one does not have to worry about burning a hole in one’s pocket during these stressful times.
Ideally a term plan should be purchased with a long-term view and not just as a measure to tide over these unprecedented times. But difficult times call for a work around constraints in order to achieve one’s aim:
1. Opt for online term plans: These can be easily bought online from the comfort of your home. The process is simple, quick and the premiums are usually discounted versus their offline counterparts.
2. Select plans that require only tele-medicals: This particular point only applies to Covid-19 times as venturing out for medicals would not be advisable at this point in time. You might not get the desired coverage with tele-medicals but you can always buy additional policies in better times to cover the gap.
3. Look for plans which offer additional features: Plans that offer features like in-built riders, joint life cover, flexibility to increase/decrease the life cover etc. should be considered to suit individual needs
4. Don’t make cost the only deciding factor: The reputation and history of the insurance company, its management, processes, customer service etc. should also be given due consideration.
5. Provide complete and accurate information: Be sure to disclose everything to the best of your knowledge - your existing health conditions, family history, all existing and proposed insurance plans and all other details asked for. Any incorrect or undisclosed information could lead to rejection of the claim which will defeat the very purpose of taking the term plan.
6. Study terms and conditions carefully: Reading the fine print is very important. Always be well informed of the terms, conditions, processes, benefits, exclusions etc. with regards to your plan.
Most importantly keep your family informed about all your life insurance plans. Maintain a file of all important documents that would be needed in case the family needs to make a claim
With early and responsible financial planning, one can live life #FutureFearless.
