Is it a Good Idea to Invest in Short Term Plans During the Pandemic?

 

The coronavirus pandemic turned the world upside down. Many people lost their livelihoods, their savings and their loved ones. The outbreak of the pandemic proved to us just how unpredictable life can be. While we cannot stop the pandemic from affecting our lives, we can plan our finances to cushion the blow. One of the most affordable financial tools available to us is short term plans. These policies provide life cover for a very specific period. Let’s take a look at all the reasons why you should invest in life insurance plans.

Key Reasons to Invest in Short Term Plans

When it comes to investing, people often look for plans that offer high-value returns. Life insurance hardly ever tops the list. But, having a term plan or other similar policy is crucial. Here’s why:

1. Financial Stability

Short term insurance policies offer you financial freedom and stability at multiple levels. Firstly, they’re the most affordable plans in the market today. Let’s assume your earnings and spending power have been affected by the pandemic. You might not have a lot of savings left over every month to invest in market funds, but you might be able to afford the premium for term insurance. Term plans offer life cover. So, if anything were to happen to you while the policy is active, your family will receive the death benefit payout. The money could help them maintain their financial independence even after you’re gone.

2. Boosted Benefits

Term plans today offer more than just life cover. Short term insurance policies have a range of add-ons that you can use to customise your cover. From critical illness payouts to disability benefits and waiver premiums, you can pick the riders that best suit your lifestyle and needs.

3. Quick Purchases

You can buy a short term plan from the comfort of your home. You can use any internet-enabled device to visit your insurance provider’s website and buy the policy directly. There’s no need for extensive paperwork or any middlemen.

4. Payout Options

Traditionally, life insurance policies offered a single lump-sum payout as the death or maturity benefit. Over time, this has changed. Today, you can opt for your nominees to receive the payout in monthly instalments. Essentially, the plan is tailored to help your family replace any income they may have lost.

5. Benefits

Terms plans have evolved over the years. Initially, these plans did not offer any kind of maturity or survival benefit. Today, most short term plans come with a return of premium option. If the insured outlives the policy term, they will receive all the premium payments they’ve made over the years as a survival benefit. Some plans even offer enhanced maturity benefits, allowing you to use short term insurance policies as a savings and investment tool.

The Best Life Insurance Plans to Invest in During the Coronavirus Pandemic

HDFC Life offers a variety of term plans. During the pandemic, the best option is our Click 2 Protect Life Term Plan. It offers life cover and additional benefits all at a price that fits your pocket.

Tops 5 Features of HDFC Life’s Click 2 Protect Life Term Plan

Our intelligent short term plan provides you with multiple benefits. Some noteworthy features include:

1. Multiple Plan Options

There are three variants of the Click 2 Protect Life Term Plan. The first is the life protect option. The second variant is the Life and Critical Illness Rebalance option. Here, we help you maintain a balance between your critical illness cover and life cover. The third variant, Income Plus, provides you with monthly payouts from the age of 60 until the end of the policy term.

2. Accidental Death Cover

Our short term plan comes with accidental death cover. It provides an additional amount, over and above the life cover amount, if the insured person meets with a fatal accident. Accidents can happen at any time and may lead to the insured having to stay in the hospital before succumbing. With this cover, the additional amount can help alleviate the medical bill burden families are left with.

3. Whole Life Cover

If you want something more than a short term insurance policy, our plan allows you to choose cover for the rest of your life. So, no more worrying about what happens if you survive the plan. The plan will keep you covered until the end.

4. Maturity Benefits

Our plan provides the return of premiums and other maturity benefits. You never have to worry about your premiums going down the drain should you outlive the policy term.

5. Premium Waivers

If you opt for critical illness cover and receive a diagnosis during the premium-paying term, future premiums will be waived. Once you are diagnosed with a covered critical illness, we’ll provide you with the promised amount and waive all future premiums.

Today, having insurance is crucial. Make sure you find a short term plan that suits your financial requirements and responsibilities.