Personal accident insurance
The first half of the year is being dominated by Covid-19, an unforeseen pandemic which is gripping the entire world in its clutches. Amidst this life-threatening situation, concepts like work from home, social distancing and lockdown have become the norm of modern day living. The virus is proving to be extremely unpredictable. It is infecting and killing many individuals and the loss of income is a very common financial threat which many of you must be facing in recent times. Can this loss of income be substituted by insurance?
Believe it or not but there are insurance policies which can help substitute your income in case of contingencies. Let’s understand the different types of insurance plans which help cover the loss of income in this pandemic –
Life insurance policies
Under the life insurance category, term insurance plans play a BIG role in substituting lost income. If the breadwinner of the family has invested in a term insurance plan and then dies due to Coronavirus infection, the policy would pay the bereaved family a death benefit. This death benefit would help the family substitute the income which has been lost due to the death of the breadwinner. Even if the breadwinner dies due to any other reason apart from Covid-19, the term insurance policy would pay a death benefit to the family. Since term plans have low premiums, a high coverage can be easily afforded ensuring income replacement for the family in the absence of the breadwinner.
Critical illness insurance
Critical illness insurance is another tool to help substitute loss of income due to a critical illness. If you contract a critical illness during this pandemic which is covered under the policy, you would get the sum insured in lump sum. This lump sum benefit can be used by you to replace the income which you lost because of losing your ability to work due to the critical illness. During this pandemic, when getting a new job or restarting your business after the illness is challenging, the lump sum benefit received from a critical illness cover can replace the lost income and help you face the financial challenges.
Personal accident insurance
Accidental death or disability is uncertain. If, during this lockdown, you commute for work and you suffer accidental death or disablement, a personal accident insurance cover can come in handy to meet the financial repercussions of such contingencies. The policy would pay a lump sum benefit in case of death or disability which replaces the income which is lost due to such death or disablement. Moreover, personal accident plans also have optional coverage riders which specifically cover loss of employment due to disablement. If such riders are selected, you get additional financial assistance when you lose the ability to work due to accidental disablement.
The central idea running commonly in all the above-mentioned insurance covers is the facility of income replacement in case of death, disablement or critical illness. In any of these contingencies, if the breadwinner dies or becomes indisposed due to an illness or disability, the insurance plans pay a financial benefit which compensates the income which is lost. Thus, if these plans are chosen, the financial threat of loss of income during this uncertain time of the pandemic can be mitigated. The insurance plans would cover possible contingencies and pay a financial benefit which would enable the breadwinner and/or the family take care of their expenses.
You cannot control the spread of the pandemic but you can definitely prepare yourself against its financial implications. Invest in these insurance policies to protect against possible loss of income so that you can provide financial security to yourself as well as your family if any unforeseen contingency does occur.
