Secure Your Family’s Future in This Pandemic With Term Insurance Plans

Written by : Knowledge Centre Team

2020-08-20

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The world is in the grip of fear and uncertainty because of Covid-19 outbreak. The virus has impacted the whole world, to its remotest corners. The number of those contracting the disease is rising every day.

To contain the pandemic, most countries like India have implemented lockdown measures. Thus, the outbreak of Coronavirus has not only impacted families and individuals but crushed the economy and business. All prospects of fortunes for businesses have been dashed with them struggling to retain former levels of turnover. But, in spite of such challenges, the insurance industry is serving its customers or policyholders via seamless service.

Life Insurance During the Outbreak

In the middle of the pandemic, purchasing an insurance cover seems to be a beneficial step since the risk of spreading of infection is high, and there is no discoverable cure till now. Also, with the looming crisis in India, many insurance companies have come up with Covid-19 insurance schemes and some other insurance benefits.

Life insurance has witnessed a 20% growth rate during the national lockdown. The pandemic has made all people aware of the benefits of life insurance in these troubled times. Hence, opting for life insurance during this period is surely a good decision.

When a policyholder of life insurance dies due to the virus infection, the death benefits are payable to the nominee of the policyholder. But when you are purchasing a life insurance policy, you must know that insurance companies will determine your premium on the basis of your medical history and current health condition. For instance, if you already tested positive for the virus, your policy application will be rejected by the insurance company.

What Is Term Insurance?

It is a policy which ensures the financial stability of your family in your absence. The individual who has opted for this insurance policy will have to pay a specific amount (premium) at fixed intervals. If at any time during the policy term, the policyholder dies, an assured sum will be paid out to his/her nominee. As such, term insurance is the most effective form of insurance, which offers financial protection to the individual and his family in the event of sudden death.

Need for Term Insurance

For family: You must surely have a term cover if you are the breadwinner of your family. You do not know what the future holds. A term plan is like an umbrella you give your family to protect from the rain of misfortune or contingencies.
For assets: You may have a continual loan for your car, home etc. The burden will fall on your family in case of your demise. With the pay-out from the term plan, your family can repay the loan and secure the assets.
Lifestyle risks: Critical illness like the Corona pandemic, cancer or heart attack can occur at any moment. If you encounter such medical conditions, your family can suffer both emotionally as well as financially. Term insurance keeps your family safe from financial ruin, so they get enough time to recover.

protect the financial future with iselect term plan

iSelect Smart360 Term Plan

This is a comprehensive term plan offered by Canara HSBC Life Insurance, which comes with an in-built Terminal Illness cover.

The iSelect Smart360 Term Plan is an online term insurance plan which offers one with improved protection. It covers everything ranging from death and disability to regular income for the family. The following are the reasons to go in for iSelect Smart360 Term Plan:

Long term of coverage: This plan covers clients up to their age 80 plus, which ensures most prolonged financial security.
Spouse cover: This plan considers your spouse as part of your policy and provides both of your maximum coverage against financial misfortunes.
Accidental death coverage: The plan protects you and your family in the event of accidental death or disability. You are protected from financial adversity.
Financial security of family: You desire that your family is always financially secure. This plan offers a monthly income option to meet the financial needs of the family in your absence or disability. It provides for the financing of children’s education. With premium return facility, you are guaranteed total payment paid on maturity of the policy.
Increased cover: When you age, your responsibilities mature also. You require more facilities and coverage which takes care of accidents or illnesses which come with ageing. The Plan provides total flexibility on your coverage and premium. The term plan allows an increase of 25% coverage every 5 years based on ageing needs. When you are opt-in for flexible options of ageing, you will gain 100% more coverage than the original one stipulated while taking the policy, originally.
Tax benefits: When persons weigh different term insurance plans, they always worry about the extra sum they have to pay in terms of security. But often they are not aware of the big sum of tax benefits they can earn on their policy.

Term insurance works in 2 ways: in one way, it offers tax benefits under Sections 80 D and 80 C. In the other way, it offers financial security for the family even after your death.

As per 80C, term insurance plan permits you to claim around Rs. 1.5 lakh every financial year for a premium paid for yourself, children, parents or spouse. The iSelect Smart360 Term Plan helps you avail of such benefits every year by paying a minimum premium for a term policy. These are all some of the ways in which you can protect your family from the uncertainties of the times.