health insurance policy: how the coronavirus pandemic will determine your health and life insurance choices

During the pandemic, high medical costs and premature deaths caused Ankur to reconsider her insurance needs. He witnessed how friends and relatives found themselves completely unprepared for the suddenness with which they lost a loved one and the financial implications of losing a time-wasting member. Many of them were saddled with huge medical bills and problems with insurance claims. Although Ankur’s existing life and health insurance policies are sufficient to meet his tax savings needs, he wants to purchase more insurance for himself and his family. Does he need to upgrade his health policy to sum assured of Rs 7.5 lakh and existing life cover of Rs 50 lakh? He wants to know how he can assess his changing insurance needs amid the pandemic and what his options are.

It is important for Ankur to understand that its insurance decisions should not be driven solely by tax savings concerns. While this could be a certainly useful perk, it shouldn’t be the deciding factor when it comes to sum assured or coverage for a family like Ankur’s who depend on him for their various purposes. financial. Driven by fear of contracting covid amid multiple potential waves, investing in a comprehensive health plan for his family of three (including his wife and son) makes perfect sense. In fact, Ankur could also choose covid-specific policies offered by all insurers. He might consider applying for portage because he’s looking for policies with a higher sum assured and better features like no co-pays, no rent caps, and shorter waiting periods.

Ankur took out her first insurance policy four years ago to protect her family’s financial future. However, he must assess his current coverage not only as a tax-saving instrument, but also whether it will be sufficient to replace his earnings in the event of an unfortunate death. Ideally, the sum assured of Ankur’s term plan should be 15 to 20 times his annual income, and the term of the policy should last until his retirement age (61 to 81).

A well-insured household is always better equipped to deal with economic hazards. Protection products are becoming the foundation of financial planning, especially given the impact of a deadly pandemic. During unprecedented times like these, it is important for nuclear hotspots like Ankur to make the right decisions in a timely manner regarding protection specific to their needs.

(Content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)


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