COVID-19 is testing not only the systemic resilience but also the adaptability of businesses, institutions, governments, and entire societies. Around the globe, COVID-19 is disrupting all aspects of society. However, at some point, the containment phase of the crisis will end. The focus will then shift to a strong economic rebound. Coronavirus is not only a health crisis, but a “black swan” event that is well beyond what anyone expected and will have far-reaching implications for every industry including insurance.
All said and done, Covid-19 is expected to result in improved awareness and importance of life insurance. More as a protection cover rather than a mere tax saving product like seen before.
Importance of Insurance post Coronavirus:
Life insurance has always been important, as it protects your family in times of need. Your individual life insurance follows you when you retire as you are no longer insured by your employer.
This pandemic has proved how important buying a life insurance policy is and encouraged people to buy one if they haven’t already.
A life insurance policy will help you:
Pay off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family.
Provide for Your Kids: A life insurance policy will ensure that your children can continue to go to college, buy a home and even pay for their wedding in your absence.
Peace of Mind: A term life insurance policy is an inexpensive way to give your family members peace of mind, knowing that they will be protected.
Prepare for Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be utilized as tax-free withdrawals to manage any cash flow requirements. These policies can also be used to supplement your retirement if your other investments fall short.
The important thing is to choose the right life insurance product for your budget and your needs. Over the years, your needs, your family situation and your life goals will evolve. When that happens, it will be time for you to re-evaluate the right type of insurance for you to ensure you are covered adequately and basis your life stage needs.
As famously quoted by the author of the book “Black Swan” – the absence of evidence is not evidence of absence. We need to be prepared for a COVID-19 like situation, which was never anticipated and came unannounced. Remember that you are never too young to buy life insurance. The younger you are, the lower the cost of your premium. So, ensure that your loved ones and your dreams are protected.