Life insurance is essential at all times because it offers protection to the insured and their loved ones. It becomes all the more pertinent at a time such as this; the pandemic has taken a toll on not just the health and lives of people but on livelihoods as well. Having a ring of protection such as life insurance can ensure you cope better.
In the wake of COVID-19, the life insurance industry has become all the more significant. More people work from homes, there is uncertainty and fear about contracting the disease and the expenses that follow. However, the life insurance industry has ensured that people can buy life insurance policies online and take assistance with the insurers on phone, making it convenient and seamless. Forms can be filled online and any doubts clarified via video or phone calls.
Documentation has become efficient and easy, making it convenient to get life insurance now. Also, while many insurers make medical tests mandatory, some insurance plans can be availed without medical tests, based on factors like your age, sum assured etc.
There are various types of life insurance policies. You can buy life insurance for various reasons, and depending on the reason, you can pick a plan. There are term insurance plans, unit-linked insurance plans (ULIPs), participating endowment plans or whole life insurance plans -
• A term insurance plan offers life protection to the policyholder for a specific term wherein death benefit/sum assured is paid to the nominee upon the death of the policyholder during the policy term.
• A ULIP provides both life cover and an investment opportunity.
• A whole life insurance plan offers life insurance cover to the policyholder for a lifetime, up to a maximum of 100 years. The sum assured is paid to the nominee if the policyholder passes away. If the policyholder survives, maturity benefits are provided.
• A participating endowment plan offers life insurance protection apart from savings to the policyholder. Such a plan offers a sum assured and a bonus (if any) as death benefit to the nominee if the policyholder expires. If the policyholder survives, the bonuses (if any) are paid at maturity.