The coronavirus pandemic has changed the attitude of people around the world. The pandemic has affected people living in every part of the country and profoundly impacts the economy, politics, culture, and society of the country. According to official data released by the Office for National Statistics (NSO), the country's gross domestic product (GDP) declined by 23.9 percent in the April-June quarter of FY 2020-21. This kind of adverse impact on GDP was caused by limited economic activity amid the lockdown carried out by the government to prevent the coronavirus pandemic. During the last four decades, the economy had not seen such a big decline.
Secure your future with a term plan:
You need to have an all-round solution to protect your family from any kind of outstanding loan or other financial crisis in an unexpected situation. Term life insurance plans play an important role in providing financial security to the entire family in the sudden death of any unexpected situation, such as the sole earning person. The self-employed working population of the country and their families have the highest financial risk as compared to salaried people and, therefore, they must consider the need for term insurance. However, according to a recent report, only 20 percent of self-employed people in the country take term insurance every year. The income of self-employed people is not always the same, and they have to understand savings and investment in the short term for large profits in the long term. The self-employed person is also responsible for repaying the loan taken for business, apart from the family's responsibility. There may be many liabilities at different stages for a business. Therefore, your family must have adequate financial support through a term life insurance plan.
There are many challenges before self-employed persons, though they have a few problems in the way of taking term insurance. Term insurance, as the name suggests, if something untoward happens to the policyholder in the policy term, gets the beneficiary's coverage. The monthly premium for the term plan is meager. This premium depends on the age, gender, and medical history of the person taking the policy. A 30-year-old person can buy term insurance of Rs 1 crore in a monthly premium of just Rs 1,000. Term insurance is an ideal choice for self-employed people, as it promises returns on 'investment' through affordable, easy, and even term return of premium plan. Moreover, it protects the policyholder from any kind of uncertainty and caters to the people who depend on it.
Challenges facing the unorganized sector:
90 percent of the country's workforce working in the unorganized sector, i.e., about 40 crore people, face employment-related insecurity. In some cases, the Government and the judiciary have intervened and also issued advisory notices, but are these sufficient? What about policy-related interventions? It is crucial to understand the problems the owners and self-employed people of small companies face during the current corona epidemic period. These people working in the unorganized sector are neglected in the discussion on the economic impact caused by the COVID-19 epidemic. According to data from the Centre for Monitoring the Indian Economy (CMIE), more than 4.5 crore businesses are estimated to lose their jobs during various phases of lockdown.
Those who are doing self-employment are likely to have a huge financial burden. This financial burden can be in the form of working capital loans or sometimes personal loans in expanding the business. In such a situation, self-employed people may have to compromise their savings or investments. This may pose a big problem if money is required in an emergency. This emergency compels us to think that planning is essential for the future.
Best term insurance Plan:
Since the income of entrepreneurs and self-employed people is not uniform every day, the premium-filling plan for them for a short period of time is good for them. When your income increases, you can take advantage of coverage till old age by paying all the premiums. Moreover, as a self-employed person, you retain earnings even after your retirement. In this way, long risk coverage is advisable for you even after retirement as an income replacement in your case. If you are now 35 years of age and take a 35-year term, with a premium paying term of 10 years, you have paid your premium when you reach 45. You take advantage of coverage for 70 years. The payment of premium in the limited pay plan is completed in a few years. As a result, you can take advantage of long-lasting coverage. If you feel that you will not be able to pay the premium during the entire policy, this plan is good for you. The payment of premium is completed shortly, and in old age, you are exempted from the obligation to pay the premium.
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