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Life Insurance: A Consumer’s Perspective

As we are all moving on with our lives during the current Covid crisis, we have come to an understanding that there is currently no pandemic exclusion for life insurance. This means that there is no way a beneficiary will be blocked from receiving an insurance payout, even in the most ill-fated situations that a person passes on from Covid-19 or complications associated to the virus.

Implications on Premiums

An important point to note here is that consumer rating and premiums will not change as long as the consumer makes premium payments on time and keeps everything up to date. Insurance companies are here to protect, and all beneficiaries will receive what is stated in their life insurance policy, disregarding the current pandemic crisis. However, there may be some pre-requisites or provisions that may apply to new applicants.

Mental Health Concerns

Mental health has always remained a sideline topic when it comes to majority of Asian regions and has always played second fiddle to physical heath. However, during this pandemic, statistics have showed extreme changes in financial and unemployment conditions of many households and as a consequence, over a quarter out of thousand people are now feeling anxious and concerned regarding certain mental health issues.

Feeling of loneliness and isolation has crawled into the minds of many individuals who have left behind their physical health concerns and are now more worried than ever about their future financial prospects and loss of income.

Beyond Insurance Payout

It has been observed that insurance holders have looked for add-on services along with their policies. In Singapore, many insurance companies have aided beneficiaries by providing immediate finance assistance as per consumer demand. Some individuals have also been on the forefront to demand for healthcare products such as face masks and medications.

Given a these factors, many insurance companies in Singapore have claimed that policy holders also requested for faster claims payments and more flexibility in high interest.

Insurance as a Safety Net

In times of crisis, nothing works better than securing yourself financially and creating a future build on trust through a powerful insurance policy. The role an insurance policy plays in an individual’s life provides freedom, eases stress and releases financial burden, especially during thick and thin.

Company surveys have suggested that people were ready to give up on their motor policies just to accommodate for life insurance as health has become the number one factor in order to survive in this pandemic.

Amount of Coverage

Common knowledge suggests that one should keep a significant insurance amount to cover all critical illnesses. However, this is a common concern these days as the policy holder will have to pay a higher premium amount to cover critical illnesses. If that is the primary reason, remember that it’s better to have some level of critical illness insurance cover instead of having none at all. A genuine advice here would be to start small and build up later as you have money for insurance.

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