The second wave of COVID-19 saw an unprecedented number of deaths. Particularly, the social sector lost many prominent social and human rights activists to the pandemic. People engaged in social sector do not enjoy the same financial security and the additional compensations/perks that are provided to employees working in government/PSUs positions or MNCs. Even health/accident insurance plans offered by NGO employers often do not offer an adequate life cover. So, it becomes more important for social workers to have a good insurance policy.
Term insurance is the purest form of life insurance policy which is for a fixed period of time. If the policyholder passes away before the end of the policy term, it provides their family with a death benefit. Typically, term plans do not pay if the insured outlives the term.
Why should you get a Term insurance?
What is the Insured Amount Under Term Insurances?
Financial experts suggest that the amount of life insurance should be 15 to 20 times the income of insured in order for it to be efficient and most helpful.
Types of Term Insurance Policies
Does Term Insurance Covers Death Due To Covid-19?
The answer is yes. If an individual passes away due to Covid-19 and had a term life insurance policy, the nominee will get the sum assured as death benefit. We found that for an insured who wants a 2.5 Crore life cover, premiums can be as low as INR 25000 annually. Tools such as those offered by Policy Bazaar allow you to compare plans and choose the most suitable one.
If you are planning to buy a term life insurance policy now, you should keep in mind that insurers determine the premiums of your insurance policy based on medical history. And always, read the fine-print before you buy the plan!
This edition is contributed by our summer intern Ashwin Jain