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The pandemic has made insurance a must-have in any financial plan

January 23, 2021


The pandemic has underscored the concept of preparedness like never before. Apart from the safety measures you should take such as mask wearing, physical distancing and hand sanitisation, you would also need to look at preparedness on the financial front. The best way to ensure that you are prepared and safe financially is to get yourself insurance.

Insurance is that ring of protection you throw around yourself and your family members. However, there are different types of insurance policies you could opt for. There are linked and non-linked non participatory insurance plans. Also, while there are pure protection plans, there are also plans that help you with savings. In a pure protection plan, the only aspect that is looked into is the coverage that is offered to the insured person for a term. Term insurance is a pure protection plan. On the other hand, there are insurance plans that offer a savings element.

However, how this savings element comes into play depending on whether you opt for a linked or a non-linked participatory insurance. In a linked insurance plan, a portion of the premium is invested in the markets. These are typically called unit linked insurance plans, and are linked to market performance.

What is a non-linked and non-participatory plan that is also a savings plan?

A non-linked and non-participatory insurance plan is a kind of insurance policy wherein you will not receive any sort of dividends or bonuses. If that plan is also non-linked, it means the insurance plan is not linked to market performance. You will receive guaranteed returns because the non-linked plan's performance is not dependent on the markets. The savings element

How does a protection + savings plan help?

A protection and savings plan, especially one that is non-participatory and non-linked is a safe and risk-free option. An insurance plan that also offers savings helps you plan your life goals without worrying about unexpected liabilities come your way. Your goals need not alter because you have a savings insurance plan in place.

In trying times such as the world is currently facing, people look for stability and low-risk. A protection and savings plan that offers guaranteed income and assured benefits are the need of the hour at the time of a pandemic when jobs and incomes are uncertain, and so are a person's expenses. You may have to spend on medical bills or hospitalisation expenses; you may have to cope with pay cuts or unexpected expenses at home. At such a time when there's a need for a steady income that will help the family cope, a protection and savings insurance plan comes in handy. Some of the options that a protection and savings plan that is non-linked and non-participatory include:

  • Guaranteed income:

    Picking a variant that offers this option means you get regular payouts for a fixed term, which could be in the range of 10-12 years. This is useful if you have loved ones dependent on a fixed income for a specific period till they can be independent.

  • Long-life income option:

    The guaranteed life long income option ensures that you get a guaranteed income till you touch 99 years. This is ideal if you have a family that is fully dependent on you or if you are the breadwinner.

  • Long-term income option:

    This variant ensures that you get a guaranteed income for a term that is fixed for 25 or 30 years.

  • Guaranteed maturity:

    The maturity option ensures that you get a lump sum payout of your benefits at the time of your policy's maturity.

    Pick a plan such as HDFC Sanchay Plus that is non-linked non participatory savings insurance plan and you get all these benefits. The savings component ensures that you get a fixed income at an uncertain time such as now, when the world is facing a pandemic, so you can cope better.


Insurance is a must-have in your financial plan because life has a way of throwing some unexpected surprises. You would need to ensure a steady source of income for your loved ones so they stay secure and meet unexpected expenses or change in circumstances. This is why it becomes important to choose an insurance plan that doesn't just offer protection but also a guaranteed income to cope with life's uncertainties. The pandemic has not only affected the health of millions; it has also impacted people's livelihoods and jobs. There have been job losses and pay cuts. Added to this burden are rising medical expenses. These are testing times and such a time needs guarantees such as a savings and protection based risk-averse insurance plan.


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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.