Importance of Insurance during COVID-19: More than 6 million people have already been impacted by COVID 19 across the globe in the past few months and numbers continue to grow rapidly. The future is very uncertain and anyone can catch this virus. During such unforeseen times, one must relook at the insurance policies which a person has and the insurance cover which these policies offer. If a person does not have an insurance policy or does not have adequate cover in the insurance policy, then he should evaluate taking another insurance policy.
How much cover should an Insurance Policy have?
Irrespective of whether you already have an insurance policy or are enrolling for a policy for the 1st time. The one question which every person has is how much should be the insurance cover?
Although there is no exact answer to this, experts suggest that it should at least be 10 times your annual income. And if you are in the early years of employment, then the insurance cover should be at least 15 times your annual income. This is because, in your early years, your annual income is comparatively lower as compared to later years of employment.
Moreover, considering the speed at which the household expenses are increasing, every person should have at least this much insurance coverage. In case a person does not have this much insurance cover, he/she should ideally contemplate taking an additional insurance policy that offers additional cover over and above the cover which the existing policy offers.
Things to check before you buy an Insurance Policy:
Apart from checking the insurance coverage, there are various things that a person should check. Some of the important things to be checked are:
- Check the percentage of death settlement claims settled by the insurance company in the past. This is important to be checked as no insurer has a 100% Claim settlement ratio and some cases always do get rejected. It is important to check this number as this shows the past record of the insurer as to whether they are strict or lenient in approving the claims.
- Before signing up for the policy, you should also check that in the case the future you wish to cancel this policy, would the amount paid by you be reimbursed, or would that get forfeited.
Apart from checking the above important points, a person should read all the insurance documents before signing the document and should also read the insurance policy after it has been issued.
If you want to purchase coverage, we can provide a free quote. Need more information on life insurance? Please contact Top1insure for more insight.