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Importance of Insurance Especially During a COVID-19 Pandemic


importance of Insurance    

Insurance has always been a recommended instrument in financial planning. However, with the ensuing global pandemic, the importance of insurance is even more pronounced. Especially, a term insurance plan is paramount when it comes to:
1.  Protection: Life insurance can guard your family against financial instability so that they can carry on their lives with dignity and comfort.
2.  Financial security: It acts as an assurance from unexpected events such as terminal illness or untimely demise.
3.  Debt cover: Insurance can be used to settle loans, credit dues, etc.
4.  Tax-benefits: You can claim up to ₹1.5 lakh annually under Section 80C of the Income Tax Act, 1961. Also, the final death or maturity benefit is also tax-exempted under Section 10(10D).

Importance of Life Insurance During a Pandemic
The pandemic is not only a health emergency but also a financially challenging time. While the repercussions of Covid-19 can differ for everyone, the cost of the treatment can be expensive for most patients.
An average person who is hospitalized in Delhi for 14 days can end up paying up to ₹2 Lakhs without a ventilator.
The costs for patients on ventilators are considerably higher. These costs are estimated figures that differ for private and public hospitals. However, these numbers provide a notable insight into the expenses that can arise out of the disease. Therefore, buying insurance is crucial at such times.

A Look at the Insurance Statistics in India
According to the Handbook of Indian Insurance and Statistics (2016-17, released by the IRDAI), only 328 million Indians had life insurance in India in 2017. This may seem like a considerable number, but here is how this data translates:

The above statistics consider one policy as one unique citizen. However, considering that one person might hold multiple life insurance policies, the number of individuals not covered under life insurance is much higher.
Also, India has one of the highest ‘Protection Margins’ in the Asia-Pacific region. India has a protection margin of 92.2%. That means if a family needs ₹100 for protection in case of income-loss, they only have ₹7.8 to cover it, leaving a gap of ₹92.2.

How does Adequate Insurance Help in Trying Times?

Adequate insurance:
1.  Protects your family: Upon the death of a sole breadwinner due to COVID-19, life insurance can offer them the necessary support.
2.  Covers expenses of children: In your absence, your children can carry on with their lives, pursue higher education, and get married.
3.  Offers peace of mind: With life insurance, you can steer out of financially trying times with a financial cushion.

Buying Insurance Online
You can buy a suitable insurance plan with the click of a button. Trustworthy and customer-centric insurers like Aegon Life can help and guide you every step of the way to deliver a quick hassle-free process that secures you for life.
Features of Aegon Life iTerm Insurance Plan
Keeping in mind the demands of Covid-19, Aegon Life iTerm Insurance plan offers various benefits.

Three plans:
1.  Life Protect: The plan offers life cover and 100% payout in case of a terminal illness. You can also increase the cover at different life stages.
2.  Protect Plus: The life cover increases by 5% annually, with no difference to the premium. You also get 100% payouts on terminal illnesses.
3.  Dual Protect: The plan offers a life cover, regular monthly income from the age of 60 until maturity, and 100% payout on terminal illness.

Major benefits:
1.  Life cover till the age of 100.
2.  Lump-sum payouts on the diagnosis of 36 critical ailments till the age of 80
3.  Payout options like monthly, lump-sum, or both.
4.  ‘Go Healthy’ benefit that provides preferential terms for people suffering from lifestyle-related issues such as hypertension.
5.  AD Rider for enhanced protection in case accidental death.

The unique Quit Smoking benefit is another added advantage. Given the current climate, the need for a healthy and fit body is crucial. Coronavirus can have a detrimental impact on smokers. This can be a good opportunity to take advantage of such features, quit smoking, and ultimately enjoy a cover at reduced premiums from the second year.
Aegon Life COVID-19 Insurance Plan

Major highlights:

1.  Lump-sum payouts of up to ₹5 lakhs on hospitalization + 50 Lakhs Insurance Cover
2.  4 plans based on life cover.
3.  No medical test.
4.  Death & hospitalization benefits.
5.  Tax benefits

The entire procedure of purchasing the Corona Insurance plan can be done from your home. Moreover, you can continue using the insurance plan even if you have used the COVID hospitalization payout.


Having established the importance of life insurance, it also essential for you to pick a plan that adequately covers all your needs. Both the Aegon Life iTerm Insurance Plan and the Aegon Life COVID-19 Insurance plan are comprehensive policies that have been crafted to provide you ease, convenience, and hassle-free experience that can help in your hour of need and protect you against many adversities.

(Disclaimer: The above press release comes to you under an arrangement with MediaWire. The Fame Publish takes no editorial responsibility for the same.)

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