The COVID-19 pandemic brought about a major shift in the perception of life insurance among consumers and the delivery modes by insurance providers. It changed the way businesses in India, including the insurance sector, operate. Even for the consumers, the pandemic was a wake-up call regarding the importance of life insurance in challenging times.
Let us see the 4 major transformations in the post-pandemic life insurance sector:
1. Life Insurance is deemed as an ‘Essential Commodity’
The financial impact of the pandemic has led to people valuing the protection and fallback offered by life insurance products in tough times. The second half of the 2020-21 financial year saw a 16% YoY business premium growth, with more people preferring to buy single premium policies (as a protection against future loss of incomes).
2. Change of Perception for life insurance as a pure risk insurance cover:
This can be attributed to the psychological impact of the COVID-19 pandemic, but people are veering towards pure protection plans like term life insurance rather than insurance-based plans like ULIPs. As more and more people look to buy life insurance, the affordability and simplicity of term plans have led to its rising popularity.
3. Customers are looking for better customization and targeted products:
After the pandemic, consumers are looking for better life insurance products, along with personalized options. The need for flexibility in payments, innovative products, online modes of transactions (contactless purchase and renewal and added benefits of COVID-19 insurance in existing plans are some of the primary expectations from a post-pandemic insurance sector.
4. Rise in digital modes of transactions by customers:
With the increasing focus on social distancing and contactless transactions, more and more consumers are turning to online modes of buying and renewing life insurance. This has prompted insurance companies to offer digitally enabled omnichannel systems and better online functionalities.
As a buyer, you need to avoid ‘panic-buying’ and focus on buying the right product. Research, compare and find the best term insurance plan that suits your needs.
You can check out the Edelweiss Tokio Life Insurance Zindagi Plus term insurance plan. It covers death claims due to COVID-19 and protects you and your family from uncertainties.