If you have a family, a life insurance policy and payment protection plans are essential investments for your future suggests Richard Cayne at Meyer International Ltd. We all understand that these products provide critical support and assistance in the unfortunate event that a loved one should pass. However, unbeknownst to many, there are even more immediate ways in which a life insurance policy can benefit the holder more directly. There are policies that allow the holder to cash their policy out completely or even borrow against it. Some of these caveats do come with penalties, but others can effectively become like a pension in that they begin paying out once you reach a certain age.
With the burgeoning reality of the COVID-19 pandemic on the rise, I’ve discovered that there’s been a strong increase in interest towards estate planning and life insurance. People want to protect their families and small businesses in these uncertain times. The irony, however, is that many companies are slowing down the writing of their life insurance contracts as a direct result of the pandemic.
Obviously, being that the global COVID-19 epidemic is what it is, there’s no surprise we’ve seen an uptick in estate planning, overall. The unfortunate reality is that economic disarray, as well as health and healthcare crises, have been a major issue for a lot of us during these unprecedented times. It’s important that we have a solid game plan in place for ourselves and our loved one’s should COVID strike in any way. For many of us, the quickest and easiest way to put these protections in place is to take out a comprehensive life insurance policy. As we’ve mentioned before, however, insurance companies certainly do not like risk. Anything from a pre-existing condition to poor lifestyle choices can mean that your insurance company may increase your premiums, or even worse- not cover you at all. Their job is to avoid having to pay out a claim for as long as possible. The longer you live, the more money they make. It’s a brutal truth, but it’s the truth, nonetheless.
Of course, COVID-19 has only thrown a wrench in the gears by further delaying the entire process. Life insurance companies are being extraordinarily careful due to the fact that there are still so many uncertain factors surrounding this virus, particularly in global regions and countries where the active rate of infection is so high. If you answer ‘yes’ to one or more of the following questions, you can likely expect life insurance companies to add on some extra steps.
If you answer “yes” to any of the above, you will likely need to self-quarantine for a specified time frame and/or produce a negative testing result for COVID-19 after that period is up. Guidelines set forth by many insurers were defined by The British Medical Association and are unlikely to be flexible.
While you may be living in a relatively COVID-19-free zone at the moment, there is no current guarantee that variables won’t suddenly find themselves subject to change at any given moment. Being that as it may, you should probably reevaluate your life insurance coverage and possibly even consider purchasing a policy for you and your loved ones. The additional obstacles that this entails means you may want to confer with a trusted financial expert like myself, to ensure that you are putting your money into the policy that’s right for you.
Richard Cayne is CEO of the Meyer Group of companies from Bangkok Thailand and is wholly owned by www.asiawealthgroup.com or stock exchange link:
Richard has been involved in wealth management in Asia for over 25 years and has consulted with many high net worth Japanese families on innovative international tax and wealth management planning solutions.