Covid-19 has brought two important points into the limelight for the entire human race:

All human beings irrespective of race, richness, nationality, civilisation and health status are equally exposed to the risk of untimely death – despite advancements in science and technology in medical front.

Prevention is always the only better available remedy for COVID-19 as no medicine is invented for its cure so far and still a vaccine is far away.

The only safest and proved measure of not getting Coronavirus is to have a mask completely covering the nose, mouth and eyes, to maintain safe distancing from others and to maintain personal hygiene. To curtail the spread of this virus across the globe is to identify the people with Corona positive and isolate them from healthy people.

Currently, we are witnessing the same followed in all societies across the globe. Unless you are proved that you were not affected by the Coronavirus you would not be ‘selected’ for joining the group which you wish to join! This is what currently we are witnessing in India and all other countries.

So, I feel there are so many similarities between COVID-19 regime and working of life insurance.

Life Insurance also works with the same principle of selection of good lives to give insurance policies as otherwise substandard or ‘bad’ lives may be selected that results in fake/fraud claims.

The selection process by the Life insurance companies involves preventing the ‘bad lives’ to join the group of existing policyholders to take away their (existing customers’) rightful share of benefits from the life insurance products.

The process of selection of ‘good lives’ works on the below parameters:
A person must be medically fit so that his/her life is not exposed to an untimely death.
A person must be financially fit to honour the policy contract for a long term of more than 15 years without making the policy lapse due to financial problems.
A person must be having financial value that can be replaced by the policy if untimely death occurs.
A person must pay the policy premiums from income sources legally validated by PML Act and within KYC guidelines.

If you are falling in the category of ‘Good Lives’, then COVID-19 regime is the best time than ever before for taking a life insurance policy.

Opportunities in COVID-19 Regime

One should take a life insurance policy before being infected by COVID-19, once affected, one ceases to be a ‘good life’ in the eyes of life insurers. Medical research so far reveals that Corona would have a lasting impact on the wellbeing of people of all the ages, affecting vital parts of the body like heart, lungs, kidneys etc. Its effect is more fatal for those who are already suffering from critical diseases.

Getting life insurance protection policy is relatively easier now than ever before as all life insurance companies are providing online facility to purchase the policies. Without stepping out of one’s drawing-room, the policy can be taken by online submission of proposal forms, uploading documents digitally, following the e-KYC formalities etc., and online payment of required premium. These customer-friendly measures with without violating the COVID-19 guidelines, make the process of getting a policy much easier and simpler.

As per latest IAMAI (The Internet and Mobile Association of India) Report, India has 504 million active internet users now and out of this, 55% of the users are from rural India. This indicates that even people from rural areas can also get life insurance through online mode as easily as their urban counterparts.

Life insurance companies are offering policies with competitive premiums to sustain in the business in the COVID times and this is an opportunity for people to get the policies at cheaper rates than earlier.

The basic characteristic of life insurance, that is -With minimal investment periodically, one can immediately create a huge estate and provide protection to one’s loved family against the untimely death-still holds good with COVID-19 pandemic. Here one should not get into the trap of comparing the returns under a life insurance policy with other financial instruments as life insurance falls in a separate category altogether.

When the threat to life of everyone including the young and healthy people is more now than ever due to COVID-19, it is ONLY the life insurance that guarantees the future financial stability and security of the dependent family.

Summarising the similarities between COVID-19 regime and buying life insurance:

“If you slain in battlefield, you will qualify for heaven, if you win you will enjoy the luxurious life of a King. Therefore, O Son of Kunti, rise and determine to fight.”