Five points to keep in mind while buying life insurance in a Covid world

5 MinsSept 15, 2021

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Michelle Barreto, 26, is a doctor. For the last 18 months, she has been on the frontlines of the battle against the Covid-19 pandemic. Her father works with a private firm, and her mother is a teacher. Both are in their mid-fifties. They have spent the bulk of their savings on ensuring that their only daughter could fulfil her dream of becoming a medical professional.

Since Michelle is the only child, she has to shoulder the responsibility of looking after her parents in their old age. Being a doctor, she is also aware of the risk to her life, given that she works closely with Covid patients.

She has, therefore, decided to buy life insurance for herself. This way, if anything happens to her, her parents would still have a corpus for their old age. In taking this decision, Michelle has joined a growing number of young Indians who have purchased insurance in the wake of the pandemic. A report by Reuters said that during April and May 2021, "the numbers of people aged between 25 and 35 buying term insurance was 30% higher than in the previous three months combined.”

However, buying life insurance during COVID times is not a walk in the park. Insurers are asking for additional tests to ensure that people are not COVID positive, or if they have been, have recovered completely. Because of the enhanced element of risk, life insurance policies have also gotten more expensive, especially term insurance, where insurers have increased premiums by up to 20%. 

Here are a few points Michelle can keep in mind while buying life insurance in these times:

Ensure adequate life cover: Today, the life expectancy for people who are not affected by COVID is higher, at least in metro areas, thanks to easy access to modern healthcare. Michelle’s insurance policy coverage should be adequate to ensure that her parents can enjoy the same standard of living that they are used to now, for at least the next 30 years. It helps that both parents are in their mid-50s and so still have a few years before retirement.

• Ensure adequate life cover: Today, the life expectancy for people who are not affected by COVID is higher, at least in metro areas, thanks to easy access to modern healthcare. Michelle’s insurance policy coverage should be adequate to ensure that her parents can enjoy the same standard of living that they are used to now, for at least the next 30 years. It helps that both parents are in their mid-50s and so still have a few years before retirement.
• Pay premiums on time: Michelle has to ensure that she never misses paying premiums before the deadlines. Setting up an auto-pay system with her insurance provider is the best way to do this.
• Have clear nominees: Michelle should talk to her parents and decide who will be the nominee if her death. The three of them should also know the exact process of claiming insurance. She should share relevant details such as policy number, contact number of the insurance company, etc, with her parents. 



[Also Read: How to start saving for your retirement]

• Back it up with health insurance: Getting a life insurance policy is good, but she should not skimp out on health insurance. She should also buy comprehensive health insurance for herself and her parents. 
• Policy duration: Since Michelle is young, her premium will be relatively lower if she opts for a term insurance plan or a comprehensive life insurance plan. She should take as long a policy duration as possible and as high a cover as possible.
  Axis Bank has tie-ups with multiple life insurance companies – Max Life, Life Insurance Corporation of India and Bajaj Allianz Life. Visit our website To check out their plans and calculate your EMIs with Axis Bank's life insurance calculator.

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