The ongoing COVID-19 crisis brings to light the need to have health and life insurance covers to face unforeseen emergencies.
You can take now take advantage of the relaxed rules and options to either purchase a new policy or increase your cover.
Here are 6 reasons why it may be the right time to purchase an insurance policy:
1. Relaxation on the physical checkup
Unlike in the pre-coronavirus period, few health insurance companies have relaxed the requirements around physical checkups to push their products.
2. Tax advantage
In the last week of March, as a measure to relax compliance regulations for taxpayers, the Ministry of Finance said that payments and transactions towards various schemes and investments made between 1 April to 30 June will be eligible to tax claims for the financial year ended 30 March 2020. The government has provided extra time to investors facing cash crunch to be able to claim tax benefits under Section 80C, 80D and 80G.
This means that your contributions towards insurance schemes now will be eligible for previous year's tax claims.
With social distancing measures imposed by various businesses, you do not need to visit an agent for changes to an existing policy or purchase of a new one.
Insurance companies are providing seamless online interactions with sales representatives interacting over video or telephonic calls. Forms are filled online and fitness is checked by interaction over a phone call. This has made paperwork much simpler and not time-consuming.
Purchase and subsequent payments of premiums can easily be done online.
Just like online shopping, trying to purchase an insurance policy online provides you with a wider range of options. Plus, there is no sales representative pushing you into purchasing a policy that could benefit their commission rates.
This leaves you with the choice to switch from one company's website to another and make your own analysis by comparing policies and ultimately pick what suits you best.
Most insurance player websites also have AI (artificial intelligence) enabled chatbots that give you an introduction towards what's being offered before you contact the company for purchase.
There are also new health insurance products being offered for the COVID-19, which could be helpful if you live in a red zone area or are a traveller. These are being offered at very competitive rates and exclusively for the pandemic, allowing you an upgrade over your existing policy.
Purchasing directly from an insurance company's website online is cheaper than buying one through an agent as it cuts commission costs. Further, you can compare the rates and benefits offered by two or more insurers and pick the one that provides more benefits for less.
6. Precaution is better than cure
The COVID-19 outbreak has taught us that we need to be self-reliant and prepared for unexpected events. Insurance policies are cheaper when a healthy person buys it. Even if you weren't to catch the virus, there are plenty of health complications that could arise in our modern busy lives. You could also look at family insurance policies when they are cheaper.
If you have dependents, and don't already have life insurance policies, it is easier to purchase one now.