Covid-19 has been a game-changer for many industries, with the insurance industry witnessing an increasing trend in buying life insurance plans. This global pandemic became an eye-opener for many people who didn’t believe in investing in life insurance and other related investment plans.
Today, people are aware that a single virus can break the entire nation to fall for loss and slow-down in no time. Amidst the global crisis that has happened in a couple of months due to Coronavirus, people who had a secured investment plan are the ones who survived without economic loss. Hence, having an insurance cover is a must during these challenging times of the COVID-19 outbreak.
A term plan is one of the best investment options to prepare for uncertainties in life so that you can financially secure your family without spending much. Insurance companies these days provide Covid-19 insurance policy in the form of an additional rider to various types of life insurance policy, which provides financial support for the medical charges incurred by the policyholder for treating Covid-19 disease.
With a waiting period of 15 days, Covid-19 insurance provides coverage after the purchase. If a person is tested positive for Coronavirus, he/she is covered for their medical bills, provided the diagnosis is received 15 days from the date of issuance. You can use a life insurancepremium calculator to see how this additional rider works on the base plan.
Reasons To Buy Term Plan As Your COVID Investment
- Financial security
- Medical diagnosis benefits
- Future source of income
- Tax benefits
- Single premium payment for rider
- Quick claim settlement
If you are the only income earner of your family, your absence could make things vulnerable for your family, especially in terms of financial expenses. Investing in a term plan provides assurance that your loved ones will be financially secure to meet their future needs, even in your absence.
Term plan benefits people from all age groups, be it newly married couples or new parents and business people who have debts or other financial responsibilities. You can try using an online term plan calculator to see how much coverage you will get from a term insurance plan.
Medical diagnosis benefits
If you buy a term plan with an additional Covid-19 rider, then you will be covered for your medical expenses once you are diagnosed with COVID-19. Or else, the policy nomiee will receive a predetermined sum assured in case of your unfortunate demise.
Future source of income
If you opt for term insurance with monthly income, the nominee will receive the death benefits in monthly instalments or a lump sum one-time amount. The policyholder can also select a fixed monthly payout option or increasing monthly payout option while buying the term insurance policy.
Premiums paid on term plans are tax-deductible up to a maximum limit of Rs 1.5 lakhs per annum under Section 80C of the Income Tax Act 1961. Moreover, the death benefits are also tax exempted under Section 10D, varying in some cases depending on certain factors. Hence, to avail maximum tax benefits, it s vital to pay the premium on time before the due date, as the premium on lapsed policies may not be eligible for tax deductions.
If the income tax paid is more than the income tax payable, the excess amount will be refunded in the name Tax Deducted at Source. To claim your TDS refund, you must produce proof of income and deduction details to the Income Tax Department. If you have not received the TDS refund, you can verify the TDS refund status online by downloading Form 26AS. Or else, you can contact your respective Income Tax Office to check the refund status.
Single premium payment
A Covid-19 insurance cover with a base term plan requires a one-time premium payment for the rider. These plans do not provide a renewal option. These riders are single premium policy contracts that will pay a specific portion of the sum insured if the policyholder gets diagnosed with Covid-19. A term plan calculator can help determine how much the estimated premium for the desired term planwill be.
Quick Claim settlement
Now you can easily claim for the medical coverage at the comfort of your house. Once you are diagnosed with Covid-19 virus, you can make a claim request to the insurer. The insurer will request for a set of documents to verify your request. If any documents are pending to be submitted, you will be informed. Once submitted documents meet the policy terms, your claims will be settled at the earliest.
If today its Coronavirus, tomorrow it can be some other new disease. Financial planning for the future should be done at the right time to enjoy the benefits and to reduce the risk. The use of an online term plan calculator can benefit you in knowing how much the premium payable is and how much amount will be covered. When you live in a world of uncertainties, it is imperative to stay safe with your family by investing in term insurance plans. Adding additional riders to your term plan COVID insurance cover can help you save your medical bills during emergency times like Covid-19.