Hello Readers!!

In this time of COVID-19 pandemic, one thing that we have learned the best is that life is uncertain and emergencies always come unexpectedly, the only way to tackle them is your pre-planning!

Well, one of the most efficient ways to safeguard your family finances and keep your investment going smoothly when any unfortunate event occurs is getting proper insurance covers. Insurance works as a dormant emergency fund that quickly becomes active when you or your family members need it.

Let us see what are the most important covers that individuals must avail themselves of!

Term Insurance Cover……

Covid-19 pandemic has made one thing very clear that life is uncertain, no one can say with guarantee how long he is going to be alive. No doubt, with the days passing by we are reaching closer to winning our battle against COVID-19, but at the same time, we also cannot ignore how drastically it has affected the lives of many families.

In the second wave of COVID-19, we heard many a story where the life of the family members turned upside down, their finances were completely shaken. Some families are finding it difficult to survive because of the sudden loss of their only earning family member due to COVID-19. However, those individuals who on time availed a term insurance cover, actually have secured their family finances after them.

A term insurance plan promises to pay the sum assured to the family members of the policy owner in case of his sudden or untimed demise. It is taken as the cheapest of all insurance covers. A 40-year old taking a life cover of Rs 1 crore pays Rs 27,000 annually. In case of death of the insured, a sum assured of Rs 1 crore is paid to his family.

So basically, it is a must for an individual to understand the importance of a term insurance policy, especially those who have dependents. In this time of uncertainty, plan financial security for your dependents! Buy term insurance now if you do not have one.

Health Insurance Cover………...

Today’s necessity to lead a good life is to maintain a good health and immunity system, and if you don’t maintain good health then do maintain good wealth that you can spend on your medical expenses.

Yes, an unexpected medical expense cost is not that easy for a family, in fact, it holds the capacity to digest all your family savings and investments in one go. If we talk about some of the medical expenses, a major surgery costs about Rs 4-5 lakh, bypass surgery costs about Rs 2-4 lakh, while a kidney transplant costs at least Rs 4 lakh.

After this, there are other various costs like hospitalization charges, doctor’s fees, sanitization cost, ambulance cost, medicine cost, etc. that adds more to your bill. However, a health insurance policy with adequate cover can save families from financial ruin in such cases.

In times of COVID-19, health insurance policy becomes more important in several ways.

• Several cases require intensive care treatment and ventilator support, which drives the cost of treatment upwards very quickly. Without Mediclaim, this is a huge bill for the average Indian citizen.
• The probability of multiple members of a family getting the virus and requiring hospitalization is not too low. Healthcare coverage can save families from financial ruin in such cases.
• The cost of the general treatment of COVID-19 is high due to special protective gear required PPE kits, gloves, masks, and other supplies that come at a cost. Mediclaim can save you from such extra expenses.
• Immediate hospitalization due to oxygen levels falling abruptly requires an ambulance facility that adds your expense. During such times, ambulance cover provided in a healthcare plan can be a savior.

Thus, it is a must for an individual to understand the need for a health insurance policy not in times of COVID-19 only but for you all time medical emergencies. Remember Health insurance will take care of your medical expenses while you are busy taking care of your family in such a situation.

A base health cover with a sum assured of Rs 10 lakh is adequate for a young family to begin with. However, you need to top it up regularly, as medical costs escalate.

Coming to the last, I hope you have understood the importance of health insurance and term insurance and their necessity in an individual financial portfolio. If you are one among those whose portfolio is still devoid of these two, I suggest go taking these insurance covers today only.

Keep reading our articles for more updates on finance and investment!!

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).