The year 2021 has been a roller coaster ride for people around the world. Health emergencies, financial distress and mental frustration have caused major dislocations. In addition, the pandemic era taught a great lesson on what can happen to you and your family when you stay uninsured!

Here are five huge risks that stress the importance of comprehensive insurance in the current scenario:

  1. Family’s financial security suffers: If your family is dependent on your earnings for their livelihood, then it is your primary responsibility to ensure the same throughout their life. However, if you get affected due to the pandemic disease and meet with an unexpected death, your family’s financial security will be at high risk. Their living expenses will suffer and cause serious financial distress that they cannot manage effectively. Life insurance benefits can extend to the family in the form of a sum assured to the nominee in the event of your untimely death.
  2. Medical expenses can pile up: Medical emergencies cannot be predicted and planned for ensuring the necessary treatment. A life insurance plan with add-on rider benefits such as the critical illness rider will provide a portion of the sum assured to handle the medical expenses such as hospitalization charges and other treatment costs. It is the best method to reduce the financial burden associated with your family. TATA AIA life insurance provides varied add-on rider benefits for the purpose of individual needs.
  3. Long-term financial commitments get stalled: In case of your sudden death, some of the most important financial commitments, such as your child’s education, marriage etc., get affected. A comprehensive plan with insurance and savings benefits will help your family manage their financial commitments to a considerable extent. For example, a guaranteed return insurance savings plan can provide a life cover and guaranteed returns when the policy matures. As the returns are assured, your family can plan for the long-term commitments with precision.
  4. Repayment of liabilities gets affected: With the increase in your standard of living, your liabilities also keep increasing. The majority of us will hold a housing loan and a vehicle loan. In your absence, the repayment of these debts will certainly pose a big burden to your family members. With comprehensive insurance coverage, you can ensure a life cover for paying off these liabilities and a regular income for your dependents at the same time.
  5. Increases mental stress: The most important risk you take while not getting insured is your mental peace. When there is a sudden pandemic and a complete economic slowdown, everything around you gets frozen for a while. In addition, health issues and financial crises can increase your mental stress. Comprehensive insurance plans can provide insurance, savings benefits and also investment options. It can grow your wealth in the long term accounting for the inflation rate as well. You can also invest in securities for market-linked returns while ensuring a life cover.

Conclusion

An insurance savings plan offers varied benefits and flexible options to customize the plan based on your financial needs. Hence, as a wise approach, you have to ascertain your financial capacity, the vulnerabilities you are prone to, and the effects of such incidents on your family to choose the right insurance plan. And, if you fail to do so, your family’s financial security, long-term financial commitments, repayment of liabilities, handling health emergencies and family peace are at extreme risk!