Apart from the economic impact, COVID-19 has brought a dramatic shift to the dynamics of parenthood. Parents who would normally be away at work, are now spending more time with their children, thereby using the opportunity to build an emotional strength to navigate these adverse circumstances.

At closer proximity to family, there is also a greater consciousness and a need to protect loved ones from future uncertainties. To safeguard them from any calamity and ensure a financially sound future, it is important to evaluate the current financial priorities and make improved decisions that will help protect your family in the long run. As we celebrate Father’s Day this weekend, here are a few steps that fathers can take to ensure that their family is protected in the face of future uncertainties.

Review your existing life insurance plan

As a father, you will always want to be your family’s ultimate protector and a source of strength to fall back on during tough times. It is therefore important to build a stronger foundation that can always take care of your family’s requirements. A robust life insurance policy will not only help you build a financially secure future for your family but also address various life-stage goals effectively.

Understand and embrace the concept of ‘sum assured’

As per a recent survey, ‘India Protection Quotient 2.0’, it was found that nearly 54 per cent men term buyers feel that the cover of their term plan is insufficient. While buying life insurance, fathers need to transition from a savings led approach to a protection led approach by buying an adequate sum assured to shield their loved ones’ future financially.

Sum assured is an important feature of life insurance. Whether it is a term plan or unit-linked, traditional endowment plans or even retirement plans, the sum assured is the minimum guaranteed sum offered to policyholders or their loved ones in case of an unfortunate event. It is also relevant while buying protection solutions offered by the health insurance and general insurance companies.

Riders help in increasing coverage

You can also consider adding riders to base policy for enhanced protection. Riders are optional add-ons to increase the benefits of your life insurance policy and meet the unique requirements of individuals, offering wider financial protection.

Look for a comprehensive term plan that gives you sufficient cover

While purchasing life insurance, we usually look for large cover at affordable premiums and term insurance is the best example. As a pure risk-cover policy, term insurance is the most cost-effective financial instrument available to hedge against the uncertainties of life. A term plan offers a lump sum payout in case of a demise of the insured within the tenure of the policy. This can help settle one’s financial liabilities like loans, children’s education, and even supplement any blow to income, thereby making it a preferable option to consider when it comes to protecting the long term interest of loved ones.

Additionally, few term plans also offer a return of premium option where the policyholder receives the premiums paid over the tenure of the policy as a survival benefit.

Involve and update your family on financial decisions

Lastly, it is important to keep your beneficiaries updated on your investments, retirement accounts, annuities, and life insurance policies to help them make the most prudent decisions at all times.

For all its repercussions on life and the world around, the pandemic has reminded one that family is the most essential source of support and our loved ones are pillars that help us feel safe. As a father, one may feel the added responsibility of ensuring the financial wellbeing of the family. With the right life insurance policy, a father can easily fulfill that responsibility while continuing to live life to its fullest.

The author is the Director & Chief Marketing Officer, Max Life Insurance