Confidence amid uncertainty
We are in a time of massive upheaval. There are so many things outside our control, including how long the Covid-19 pandemic lasts; how other people behave; and what is going to happen in our communities. Fear is an adaptive response in the presence of danger. However, when threat is uncertain and continuous, as in the case with the present pandemic, fear can become chronic and burdensome.
Who has not asked at some point: “How will this pandemic affect me and my family? How will it affect our lives, our jobs, education, graduation, birthdays, anniversaries, vacations, social lives, finances, savings and retirement?
The question of whether one has the protection they need matters most.
Insurance is fundamentally about protection. And while it cannot protect students from finishing their studies from home, without a proper graduation, insurance can protect against many of the financial impacts caused by the pandemic. Travel insurance, health insurance, business interruption insurance, workers’ compensation, life insurance and disability, to name a few, are all types of policies that may provide relevant protection.
It is never too late to protect your family’s financial welfare.
Having life insurance regardless of what is happening around us in the world can be comforting in some way. As people are confronted with the uncertainty of possible illness or other life-changing events, insurance gives a level of certainty that financial needs will be taken care of if someone’s health is severely compromised.
Based on the current information on Covid-19, more than 80 percent of infected people have mild symptoms; only 15 percent have more serious symptoms and about five percent of cases are critical.
Only very severe cases with secondary complications of the virus need hospitalisation and possibly mechanical ventilation. Even considering this, Covid-19 is a reminder of the importance of life insurance.
Is it too late to take out cover?
It is never too late to protect your financial welfare and that of your family. While insurance is always a critical financial-service product, the Covid-19 pandemic has served as a reminder of this for some people.
People can still take out new policies, which will be fully underwritten and clients can make changes to existing policies. As with any insurance, full disclosure of all the necessary details is important. If someone is already sick and did not disclose this information, processing the application may be delayed until after a full recovery.
Insurance is often somewhat of a grudge purchase and, in tougher financial times, it could also be one of the first things to downgrade or cancel. There are many factors to consider and as this situation develops, it could become a reality that people will feel some pressure in their personal finances.
It is important to do everything possible to make sure you have insurance for all life-changing events and not only for Covid-19. It gives reassurance of financial support when you are faced with the unexpected.
The act of dying, in and of itself, does not create a need for insurance, but the result of your death may. Life insurance could more aptly be named income and expense insurance as these are the risks it covers. Life insurance exists to provide money that you or your family does not have.
If you already have the money that will be needed, having insurance is like carrying two umbrellas on a sunny day.
To put it simply, life insurance protects those who depend on your paycheque. If you die prematurely, life insurance provides your dependents with on-going income to replace yours, until they can live comfortably without it.
Formal explanations aside, a life insurance policy provides families with peace of mind. Knowing that the future you and your loves ones have worked hard for can still come true in the face of adversity provides a great sense of security.
One of the main reasons why people buy long-term insurance is for the lump-sum payment to selected beneficiaries in case of death. As Covid-19 is a completely new illness, will it be covered? Of course it will be.
It is crucial for everyone to follow the recommendations to protect themselves and others from Covid-19. While the current indicated fatality rate due to the virus is fairly low, all policyholders with life insurance policies can rest assured that they are fully covered under their life-cover benefit.
The purchase of life insurance is one of the most important decisions you will ever make in your financial life. Unfortunately, like many others, is a decision that you many put off until something happens that hits close to home.
Choosing the right life cover for your needs and those of your loved ones is exceptionally important. It can mean the difference between leaving a legacy of dignity for your family and one of debt and hardship.