COVID-19 in India
COVID-19 is a disease that is caused by a particular family of coronaviruses - SARS CoV-2. The disease is particularly devastating and can quickly result in respiratory distress, which can finally lead to death. The virus was first detected in 2019 in China and quickly spread to many nations including India.
The entirety of the year 2020 was spent fighting the virus. However, just as the number of cases were slowly coming down, the nation was hit by a second wave of new COVID-19 infections in early 2021. As of May 19, 2021, there were as many as 31 lakh active cases of infections and 2.8 lakh deaths, with the numbers rising steadily .
Why Do You Need a COVID Insurance Policy?
Since COVID-19 is a destructive disease that can quickly spread from one individual to the other, containing it, has turned out to be extremely difficult. Therefore, it is extremely crucial for you to protect yourself and your family. Under such circumstances, one of the ways to financially secure oneself is by opting for an insurance plan.
At this point, it is important to note that there is no such thing as a COVID insurance policy. As a matter of fact, if you require coverage for death due to COVID-19, you could opt for a Term life insurance plan. Apart from deaths due to other reasons, COVID-19 deaths are also covered, subject to the policy terms and conditions.
That said, let’s take a look at some of the reasons why you should get a term life insurance plan as a means to financially protect your family in the wake of COVID-19 –
1. It can help support your family financially during an uncertain event
In the event of your untimely demise which could also be due to COVID-19, the death benefit payout from a term life insurance plan allows your family to carry on with their lives without having to make any compromises to their lifestyle provided you have planned well.
2. It gives you some much-needed peace of mind
With a term life insurance plan, you can strengthen your family’s financial situation despite you not being there with them to provide support. This creates a sense of security and can put your mind at peace.
3. It gives you the option to boost coverage
The ability to completely customize a life insurance plan through various add-on riders at nominal extra cost is another important reason why you should opt for one. As a matter of fact, through these riders, policyholders can actually enhance the coverage over and above what their family would get in the event of their demise which could be due to COVID-19 or any other reasons.
4. It provides several tax benefits
Did you know that you can save on tax by simply opting for a term life insurance plan? According to section 80C of the Income Tax Act, 1961 (“Act”), the premiums that you pay towards a term plan can be claimed as deductions from your total income to the tune of Rs. 1.5 lakhs per financial year.
That’s not all. The death benefit that your family is entitled to receive upon your demise due to COVID-19 is also tax-free in their hands as per section 10(10D) of the Act. Again, here’s something that you should note. The tax benefits mentioned above are subject to the provisions specified in the Income Tax Act 1961, as amended from time to time.