From the time of their conception, insurance policies have acted as a shield for our finances in critical periods of our lives. Over time, humans developed various kinds of insurance to protect life, assets, businesses, property and whatnot. We even have mobile phone insurance and gold today.
The primary reason why people go for insurance- no matter what type – is the human tendency to think that things can unexpectedly take a wrong turn.
Take Covid-19 for instance. It was precisely how coronavirus found us!
It put the world on a standstill. The cases don’t come down the hill, and there is no end to this in sight – not until an effective vaccine comes out anyway.
So what option do we have?
The answer to this lies with masks, social distancing, hand sanitizing, and frequent hand washes. However, they do not guarantee 100% protection against the virus. And so, if you do test positive for the virus, your best shot is to safeguard yourselves with an appropriate insurance policy.
What’s the need for insurance during the COVID-era?
The need for a fool-proof insurance policy has been heightened with the onset of a coronavirus pandemic. Insurers say that their phones have not stopped ringing due to the number of cases rising every single day.
People are increasingly becoming interested in buying health insurance which covers COVID-19. Additionally, people are even more interested in buying life and term insurance plans in case they should succumb to the fight against coronavirus. Given that the number of deaths has crossed an unbelievable mark, a proactive step like this makes sense as well.
People don’t want to fall prey to the virus, and hence, the inquiries have gone up. A big part of this segment consists of millennials and many others in their 20s who were planning to buy a suitable insurance policy sooner or later. The pandemic just played the role of a catalyst in the process.
To say that the number of people buying health insurance has doubled would be an understatement.
Why COVID-19 specific insurance is important
Health Insurance
Medical care and hospitalization do not come cheap. The bills can run into millions of dollars, depending on the kind of illness you have and the medical care that you demand. The cost goes up with the complexity of your illness and the process that it demands.
With coronavirus, the respiratory system of a person has the chance to become deeply affected. Hence, numerous people require the need for a ventilator. Being hooked up to the ventilator is an expensive process. A one-day stay in the ICU with a ventilator at a hospital will need you to shell out at least a few hundred dollars.
The bottom line being, medical bills can run into millions if you do get coronavirus and have to be admitted in the hospital. Health insurance will absorb all these costs, making your pocket safe and sound. By purchasing a solid health insurance plan, you will not have to compromise with the kind of medical care that you get- you can choose the best.
It should be considered at this point that not all coronavirus cases require immediate hospitalization. Most of them require quarantine at first. However, getting into a quarantine facility can be unaffordable for many people. Many health insurance policies will cover your quarantine expenses. This way, you will not have to pay an excessive amount of money for a minimum of 14 days.
Health insurance is highly essential for senior citizens as they are more prone to the virus with multiple co-morbidities and old age. Hence, you need to invest in COVID-specific health insurance early in your life if you wish for a hassle-free old age.
Term Insurance
The mortality rate due to coronavirus is high in many parts of the world including Italy, France, Germany, and even the U.S. Although the mortality rate is not that high in countries like Australia, India, Canada, and many others, it doesn’t mean that people are immune to the disease.
COVID-specific term insurance will equip you with a fool-proof tool to protect your family at all costs. If you lose the fight against coronavirus, you can rest assured that your term insurance plan will be there for your family. The term insurance will give a ‘sum assured’ amount to your family after your death due to coronavirus. This way, your family will be looked after, at least financially and will not have to struggle to make ends meet.
Both health and term insurance should be opted for by people who are diabetic, hypertensive or have other comorbidities. These increase the chances of fatality in case a deadly virus like COVID-19 strikes them. People like these are highly prone to infections and aggravating health issues.
Future of insurance policies in the post-COVID world
There can be many caveats with buying an insurance plan in the era of coronavirus. Many insurers will be reluctant to give a COVID benefit in their policy. However, it would help if you looked for a plan which will not only cover illnesses related to novel coronavirus but many other pandemic-related diseases that could knock our doors in the future.
It is also possible that at times, insurance companies will hike their premiums for future policies. This can be understood as a side effect to insurance companies having to pay out billions of dollars in the ongoing situation. However, there is a bright side to it. The premiums can seem a little high initially. But, they will be lesser than what a 3-day hospital stay with a ventilator can cost you. It’s not a plan, it’s an investment.
The need for an insurance policy has never been higher. All it took was a pandemic like the one we are living, making people realize the importance of an insurance plan. Everyone is now realizing that an insurance plan will have you back, no matter what- just like a good friend. And when an insurance policy covers pandemics and even epidemics and outbreaks, you can rest assured that someone is looking out for you.
