We finally live in a world that is slowly and steadily understanding the significance of mental health. The conversations have only grown during the pandemic, and while distress has marked these last two years, this is truly a blessing in disguise. When it comes to mental well-being, there are certain situations that are not under our control, but your finances can be. Why do we bring this up? That’s because financial distress can be one of the biggest causes of declining mental health.

That’s exactly why proper financial planning is essential to tackle the situation. Making the right decision about where and how to invest is critical, and if needed, getting help from an expert never hurts. This is particularly essential in an era in which there is prevailing uncertainty, caused by the Covid-19 virus. 

Is there really a link between the two?

Multiple studies show a direct link between people’s financial trouble and mental health. An individual’s financial status can provide you with a hint about their mental wellness. No, we are not saying that money buys you happiness, but it can certainly offer a certain level of stability and security. A fall in income is often associated with a greater risk of anxiety, stress, depression, and consumption of abusive substances. 

Unfortunately, the Covid-19 pandemic led to massive job losses, apart from health setbacks. The inability to earn regular income caused disturbances in the financial conditions of several households. While some could fall back on their savings, those who earned daily wages were left with little to no savings to bear the loss. The trauma of a job loss, especially when you’re the sole earner of the household, can be similar to losing an individual. 

Nobody would like to be in a situation, wherein fending for your family gets difficult. Sometimes, loan payoffs and education expenses can also turn into a liability. These can give rise to mental pressure and eventually manifest as physical health problems too.

Is there a way to tackle this stress? 

There are a few strategies one could follow: 

• Do not time the market, especially during volatile circumstances. Make moderate investments, so that you do not bear huge losses. 
• Diversify your portfolio across stocks and other asset classes
• Revaluate your portfolio based on your current financial goals 
• Have some liquidity
• Consider going for a term insurance plan for financial security

Why investing in a term insurance plan is a good idea

As a policyholder, you pay a certain premium every month, so that you and your family can enjoy financial stability, even in uncertain times. In case of the demise of the policyholder, the family doesn’t have to compromise on their lifestyle. The premium you pay takes into account certain factors such as age, gender, term, sum assured, and more. 

With term plans, policyholders can also avail of tax benefits on the premiums paid, under Section 80C of the Income Tax Act. In addition, the death benefit received under the plan is tax-free under Section 10 (10D). 

Although there is a sea of options available today, it is essential to choose a plan that is in tune with your needs, and offers financial protection to your family, even in your absence. HDFC Life Click 2 Protect life ticks all the right boxes!

Here’s what you et when you invest in the plan:

• You have the assurance of a 98.01% claim settlement ratio
• Get additional sum assured on Accidental Death
• Get back all premium(s) paid on survival till maturity with the Return of Premium option
• Avail waiver of premium on the diagnosis of critical illness
• Benefits as per prevailing tax law
• Special premium rates for female lives and non-tobacco users.

The plan offers policyholders various options – they could opt for cover for their entire lifetime, or enjoy regular income post-retirement, age 60 onwards. With the Life Protect option, you get a one-time lump sum amount upon the demise of the policyholder. You have the option to choose the term cover for a limited tenure or for your whole life.

The death benefit is payable as a lump sum to your nominee if the policyholder dies during the policy term. Here, the sum assured on death for single pay is the highest of 125% of single premium, sum assured on maturity, or the basic sum assured.

There’s also the maturity benefit, in which the sum assured is payable on maturity. The sum assured on maturity will be equal to the total premiums paid if the return of the premium option is selected.

The plan also offers a 98.01% claim settlement ratio, and an additional sum in case of accidental death. That’s not all – in case the policyholder is diagnosed with a critical illness, he/she can also avail of a waiver in premium.

Plus, there’s also an option to opt for add-on riders with your insurance., whether it is in case of total permanent disability after an accident or critical illnesses, specified under the policy. Lastly, special premium rates for women and non-tobacco users are also offered.