Life Insurance: Due to the Corona epidemic, it will not be easy for people to buy a term plan now. Companies can increase the stringency for underwriting of term products offering pure protection and increase the premium due to increase in reinsurance prices.
Your life is invaluable to your family members. Since the main earner provides income to the family, the life of the main livelihood holder of the family becomes even more important. If something happens to him by accident, then the family stops getting income. If the main breadwinner of the family dies or becomes physically incapacitated, life insurance policy provides a fixed amount as income to his family.
Term insurance protects the family from financial crisis even after the death of the head of the family. The head of the household is the main source of income in the family. After the death of that person or his disability due to serious illness, other members of the family often have to face difficulties. In such a situation, if a sufficient amount of term insurance is taken, there is no impact on the financial health of the family. Along with this, they have the support of regular income.
Premium may increase
Term insurance covers things like critical illness, sudden death, permanent illness. Many companies also offer the option of regular income in term insurance to the family members. But due to the Corona epidemic, now it will not be easy for people to buy a term plan. Companies can take drastic measures to underwrite term plans that offer pure protection and increase premiums due to increase in reinsurance prices.
Strict will be the norms
Underwriting of term insurance can be tightened by insurance companies. Along with income proof, bank statements can also be asked from customers. Apart from this, conditions of medical examination may also apply. Actually, reinsurance companies are increasing the rates due to more claims.
Buying term insurance will be expensive
The increase in premium will make buying a term plan costlier. However, it will not affect the customers who have taken term plans. The premium of his policy will not increase. New customers will have to pay a higher premium for term insurance.