How to Choose a Life Insurance in Policy Post Covid Scenario
Choosing a life insurance plan takes a lot of time and energy. It can also feel hard on an emotional level. The process forces us to think about something we really don’t want to happen. Life insurance is there to protect your loved ones once you die. Thinking about that outcome is hard for most people. Then, of course, there are all the different options to consider, plus add-ons and extra costs. There are a lot of small choices involved in picking a plan. And which plan you choose can have high stakes for the loved ones you leave behind.
The past decade has introduced new challenges. In today’s society, Coronavirus may be the latest nail in the coffin. However, it is not the only thing eroding human health and livelihood. From monsoon floods in India to earthquakes, bush-fires and volcanic eruptions, since the last one year the world has witnessed a continuous flow of natural calamities on a month on month basis. Thus, in this kind of a scenario insurance is no longer a luxury that can be overlooked. Insurance, especially health insurance, has become a necessity and must hold its ground even in a conservative and minimalistic savings and investment plan
Why Should I Get Life Insurance?
The main reason to get life insurance is to protect your family after you die. The payment provides them with an immediate income that they can use in a variety of ways. This could be for their basic living expenses. It might also be for a number of costs related to your death and funeral, or any other purpose that you choose and state in your will.
Leave Money to Different Causes
You can choose how you would like your life insurance to be divided up. It doesn’t all have to go to a single person, or even all to your spouse and children.
You can choose to leave an inheritance to people you love, not just a spouse or children. You might also decide that some should be donated to a charity, provide funds for college, or pay off your mortgage.
Provide for Living Expenses
If your family relies on your income, your plan can cover replace that income for a set amount of time. How long depends on how much coverage you have.
If you have children, you can also choose who will be their guardian after your death. Your life insurance payout can then be used to provide for the costs of raising your children. This might include basic living expenses, medical costs, or tuition for college.
Type of insurance
Insurance policies are of multiple kinds. Some financial service providers have devised insurance policies for the most rudimentary problems an individual may face. However, in a post-covid world insurance policies that protect you against natural calamities and serious/ infectious diseases should be a priority. Considering the way the world is falling apart, an insurance policy that covers a floating cover for multiple diseases should be a staple for every individual. Post the covid outbreak, some insurance providers have also introduced policies especially for diseases in the nature of these pandemics.
Health cover
Insurance health cover should be determined based on an individual’s existing lifestyle, existing liabilities, and number of dependents, stress levels and health conditions. A prospective buyer should be very mindful in determining his insurance cover so as to not get himself under insured and in a soup during a crisis.
Re- assess risk
When it comes to the need to invest in an insurance policy, individuals often showcase a very optimistic attitude. However, the recent string of events have made it evident that in this new world order nobody is safe irrespective of their current health, wealth or financial wellbeing. Thus, individuals should re-assess their risk exposure by examining factors like liabilities, illnesses and most importantly geographical location and climate change.
Treatments covered/ extent of coverage
Similar to the nature of the current environment, diseases, illnesses and other situations are also unpredictable. Thus, a health insurance should cover hospital as well as in-patient treatments. A policy that covers pre and post hospitalization along with post – retirement aspects is the most suitable when you are uncertain about the circumstances in which the policy may need to be activated. Other insurance policies similarly, should cover multiple kinds of scenarios to ensure damages arising from any kind of mishaps are covered.
Turnaround time for claims
One of the most important conditions to evaluate a policy. Turnaround time is the time that companies take to process your claims. In a rapidly-destructive world like the one we are going to be entering in a few months from now, we may need a mechanism where insurance claims are settled as early as possible to be able to allow cash flow liquidity in the hands of individuals. Thus, a policy, which though offering a lesser premium, is taking dog’s ears to process a claim is certainly out of the question in a rapidly evolving global environment.
As people work together in breaking the chain of coronavirus infection, a better world is emerging. The tough times are sure to pass, leaving behind the wisdom of practicing compassion and caring for what genuinely matters in life, like the welfare of family members. People have realized the need for precautions and are taking steps against future contingencies, to keep the coming generations safe.