Kathmandu: The Covid19 pandemic, which began around the end of 2019, has hit the world hard. Coronavirus infection, which have been rampant on Earth for nearly two years, has already claimed many lives. The number of people infected with the virus is still increasing.
The pain of losing a loved one during these two years can hardly be lessened. Moreover, we can only speculate the fate of a family that has lost its bread-earner. The number of children losing both parents has increased. According to a survey conducted by UNICEF in municipalities across the country, about 14 percent of local body representatives admitted that the rate of children being deprived of parental care due to various reasons is increasing. Among these, the death of a parent due to Covid19 virus has also been pointed out as a major cause.
Against such a backdrop, financial management is essential to ensure the comfortable life of the rest of the family, even in the absence of a parent. Of the various means of financial management, life insurance is the most economical and effective option.
For financial security:
As a parent or important member of the family, the responsibility of financial security is one of the major responsibilities towards the family members. Parents should prepare in advance about the upbringing of family members, the continuity of education, and the sustainability of the shelter. In the event of a fatal epidemic, it is important to make sure you have enough means of financing your family expenditure, education, and health care.
To repay the loan:
On the basis of regular income, you may have taken a loan from a bank or financial institution and invested somewhere. Property should be pledged at the time of taking such loan. Who will bear the financial burden if a bread-earner loses his/her life without paying the principal and interest on the loan? In case of life insurance or term life insurance, the bank interest and the principal will be paid by the insurance company and the pledged property will not be auctioned.
In case of loss of employment or discontinuation of income for any reason, the insurance company provides unemployment allowance or compensation for a certain period of time based on the previous income. Such a facility has not yet started in Nepal. However, life and non-life insurance companies provide compensation for the loss of income for a period of time (maximum 15 days) in the event of an accident or in-hospital treatment. Similarly, compensation is available even in case of complete or partial disability due to accident.
For mental peace:
When the risk of financial burden due to unforeseen reasons is managed through life insurance, there is no mental stress. The thought of having insurance in order to make a living in the future is reassuring and empowering. Positive thinking and strong self-confidence are important along with medical treatment for the health benefits during pandemic, so it is important to be stress-free by managing financially.