Updated: September 11, 2020
Seems like everybody is put in a precarious position at this trying time. And because of this, people have been trying to find ways to protect their assets and positions to mitigate any more losses, presently or proactively.
Aside from saving up for the rainy day by setting up emergency funds, one of the ways people have been taking action is by applying for insurance.
It makes sense since this is what insurance is intended for: a financial safety blanket reimbursed when an event specified on the terms hits. This also seems to be the case with two of the most affected countries in terms of COVID-19 proliferation: India and the Philippines.
More and more affected people are looking towards insurance as a solution
India has close to 3.7-million COVID-19 cases in total, making it the most affected country in South Asia.
Likewise, the Philippines has the overall leading number of Covid-19 cases in Southeast Asia as well–with numbers almost reaching the 230k mark. And interestingly, this brews a situation that puts insurance at the forefront, a priority for the common folk. It’s not just an option anymore.
Sarbvir Singh, CEO of India’s Policybazaar.com has this to say about the circumstances:
“During times like these, it is important to understand people’s outlook towards personal finances, investment, and spending. This study clearly points towards both term life and health insurance starting to become a cornerstone of personal financial planning in times of the COVID-19. The pandemic has definitely accelerated awareness about insurance in India where insurance penetration remains low even today.”
He also added that a sense of urgency to apply for insurance has taken over half of the traffic coming into their portal and app. Health insurance purchases doubled between March and May this year compared to the same period in 2019.
Further East, the same could also be said about the changing tune of insurance prioritization in the Philippines. It’s been reported by Asia Insurance Review that 77% of current policyholders are looking to bolster their insurance coverage in line with the ongoing pandemic.
Should you get insurance in this pandemic?
Now with this many people doubling down on getting insurance, does this mean that you should be encouraged to do so as well? The results of popular voting don’t always turn out to be great, as evidenced by any talent show or election for that matter. However, in this case, the answer is a resounding yes.
Applying for insurance in this pandemic is a step in the right direction because it will help you cover your bases until the pandemic is controlled and handled.
While reports of vaccines and cures are hopeful, the reality is the risk of infection is still high and there aren’t any concrete viable options discovered that will combat COVID-19 until now.
Moreover, various insurance providers have already evolved to offer insurance benefits in the event of a pandemic.
Of course, keep in mind that getting insurance entails a long-term, substantial commitment of both time and investment in order to be taken advantage of fully. If you believe that your finances are in check and you can take on this obligation, these are the types of insurance we recommend you consider:
1. Car insurance
While it may seem counterintuitive to apply for car insurance given the fact that we seldom use our cars, this shouldn’t be overlooked. Lethal road accidents due to high-speed collisions have been surprisingly on the rise despite a lower volume of vehicles traversing the roads.
This has been attributed to some drivers letting their guard down since the road is more wide-open. To make sure that your car and life is at least covered in case of an accident, update your car insurance for the next 12 months.
2. Health insurance
Perhaps the most obvious type of insurance you should apply for in this pandemic is health insurance. Since the number of COVID-19 cases continues to climb, the demand for health insurance has increased as well.
Getting health insurance will prove to be a wise decision since the expenses for COVID-19 treatment may cost between a few thousand pesos to millions. In addition to this, having health insurance also covers you for other kinds of illnesses as well.
So consider this as an investment for yourself or for your loved ones when an untimely and unfortunate medical event comes.
3. Life insurance
Similar to health insurance, life insurance is also a smart and attractive option to have in this pandemic or at any time for that matter.
Opting for life insurance offers the beneficiary a payable cash sum upon his/her death to at least lessen the blow of the consequences that come with the loss of life.
Another advantage of having life insurance is it can be linked TO an investment fund. With this, you could potentially grow your initial investment that can be withdrawn at the latest date while still getting life insurance coverage.
However, life insurance is dependent on the current medical condition, age, and medical history of the beneficiary. So before you apply, make sure the beneficiary has a clean bill of health at least.
Insurance companies hold the right to reject or shoot the premium of the policy up if they see any indication of high-risk such as old age and lifestyle diseases.
4. Business interruption insurance
Interestingly, a new program has emerged during this pandemic that mitigates COVID-19’s risk to a business’ ability to continue operating. This is called a pandemic business interruption program.
While this new program is not available in most markets yet, it provides a unique kind of coverage that’s very relevant in this day and age.
Hinging on a public-private partnership, a business interruption program can keep small and medium enterprises afloat in a slow economy. It’s packaged like any other insurance policy, with the insurer determining the premium based on risk exposure.
Once the insurance matures, up to three months’ worth of operating costs and payroll can be provided for once it is claimed. Check your local listings if this program is available in your area.
5. Property insurance
In the property insurance sector, several responses have been in consideration with the proliferation of COVID-19.
Previously, only physical damage and losses trigger a possibility for a claim on property insurance. But in the current situation, certain extensions may be invoked, depending on the coverage of the policy.
Extensions such as:
- Decontamination costs – triggered when an ordinance or law is enforced due to the presence of harmful contaminants on an insured property
- Communicable disease clean up – coverage for necessary costs on cleanup, removal, and disposal of insured property due to the actual presence of a communicable disease can be invoked if these are included in the property insurance policy.
For more information, you may speak with your insurance representative to ask if this is an available option for you
The COVID-19 pandemic is one of the greatest challenges humanity has faced recently. It virtually impacted every sector of society with detrimental results.
However, proper planning and shrewd decisions will help you pass through the storm until you arrive on calmer waters.
Thankfully, we see that the insurance sector is unified in supporting consumers to stand firm and tough through this crisis with relevant products and services. Now it’s up to us to take advantage of them and protect our hope and future.
This article is written in collaboration with eCompareMo.com. Compare car insurance rates and deals for free at www.ecomparemo.com/vehicle-insurance.