"Coronavirus cases are still on the rise in India and while the covid vaccines by different companies have shown positive results during their trials, it is still going to be some months before they are distributed to the entire population across the globe and their efficacy verified. In the interim, it is strongly recommended for people to buy or renew their covid plan in the year ahead, as insurance is a protection against any uncertainty and it helps in covering the medical expenses and cost of recovery in case one unfortunately catches coronavirus," says Karthik Raman, CMO & Head – Products, IDBI Federal Life Insurance.
Insurance experts believe apart from an adequate health insurance policy, the current pandemic has underlined the need for life insurance more than ever before.
"The current times and the gloom around us have indeed re-emphasised the need for life insurance protection cover. One of the key financial needs a term insurance policy addresses is to take the place of lost future income of an individual for their dependents in case of death in the individual’s earning years," says Samit Upadhyay – CFO and Head of Product, Tata AIA Life insurance. Protection plans that cover life, as well as critical illness, would be ideal, he adds.
To further enhance protection from the ongoing pandemic, insurance experts ask people to buy critical illness cover as well.
"A critical illness benefit is important given the prevailing uncertainty due to the pandemic. Besides, incidences of lifestyle-related illnesses too are on the rise," says Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance.
Insurance companies are launching innovative products to provide the enhanced protection to people in times of pandemic. For an instance, Max Life has recently launched a Covid19 One Year Term Rider with comprehensive diagnosis and death benefits, that not only provides a lump sum amount to tide over the immediate covid19 related financial costs, but also protect customers over the period of a year as an attachment to their base policy.
"A rider provides added short-term benefits. By virtue of being the most fundamental and cost effective form of financial protection, a comprehensive term insurance policy is equally essential," says Viswanand, Deputy Managing Director, Max Life Insurance.
Not only in time of pandemic, life insurance is important in all times. "Life insurance provides protection against such unpleasant surprises which can hit us at any time. As the proverb goes – ‘It is better to be safe than sorry.’ Hence, life insurance is the first financial asset that one must own," says Karthik Raman, CMO & Head – Products, IDBI Federal Life Insurance.
Insurance is the first step to create a sound financial plan
Insurance is important to have a strong foundation for a financial plan. “Whether there is a pandemic or life as usual, life insurance is an important building block for a sound financial plan," says Anjali Malhotra Chief Customer, Marketing, Digital and IT Officer, Aviva Life Insurance.
Only after you are sufficiently insured, you should move forward to save and invest for return generation.
"After having addressed the protection requirements individuals must plan for their long-term financial goals such as retirement, children’s higher education, etc.