Topic 2: Should you renew your Covid Insurance? Life Insurance Advise for New Year

The New Year is the perfect time to create a secure financial plan and make some sensible decisions that will impact one’s long-term physical, emotional and financial well-being. While there have been recent medical advancements towards effective covid 19 vaccines, there is still uncertainty of a successful roll out on a national scale. This requires people to be equally prepared in the unforeseen future. Should you continue with insurance cover against covid19 in the next year? Yes, strongly believe the insurance experts.

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. 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. 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.

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.

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.

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. 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

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