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COVID-19 crisis has affected various verticals of the economy. Many industries and companies have been forced to rethink their operations. Even at an individual level, a great many decisions have to be reevaluated to fit the new normal. Financial planning, in particular, will be transformed in more ways than one.

The perspective of the average individual will need to be reconsidered, so they can factor in the changes that the COVID-19 crisis has brought in. The investment options on the priority list of the layman investor also seems to require a reshuffling. In the wake of the COVID-19 crisis, here are some of the key changes that financial planning will need to include.

Making room for emergency funds

The COVID-19 crisis has resulted in a lot of people losing their jobs. Sectors like travel and tourism, hospitality and even IT took significant hits. Pay cuts have also become common. In the midst of this multifaceted predicament, emergency funds are among the few solaces that the individuals affected by the COVID-19 crisis have.

Emergency funds can be liquid investment options like sweep-in FDs or term deposits, or they could simply be savings held in accessible bank accounts. In the new normal, financial planning will likely be revised to make more room for emergency funds, since an increasing number of people – both salaried and self-employed – have come to realize how important it is to have a reserve you can fall back on during times of crisis.

Key features of emergency funds:

  • Highly liquid sources of funds
  • Generally required to be equal to six months’ pay, at least
  • Either held as cash or cash equivalents

The importance of life insurance

The importance of life insurance

Life insurance is another one of the many investment options that have now moved into the spotlight. Well, life insurance has always been essential, but the COVID-19 crisis has made individuals realize how necessary life insurance is. The security that comes with a life insurance cover is unparalleled, with affordable premiums, these insurance plans give individuals a financial cover.

This cover can help the surviving members of a family tide over the financial roadblocks that occur when the earning member of the family passes away. Life insurance will likely now take center stage in financial planning, with more people becoming aware of the advantages of this financial product.

Key features of life insurance:

  • Offers a protective life cover in exchange for a premium
  • Death benefits paid out to the beneficiaries if the insured person dies
  • Tax benefits on the premiums paid

Revisiting the significance of health insurance

Like life insurance, health insurance is also a pivotal part of financial planning. And the COVID-19 crisis has brought this to the forefront. With health insurance, you can rest assured that most of the steep medical costs you’ll incur in case of medical emergencies are covered by the plan.

Health insurance comes in many flavors – some offer you a basic cover while others offer coverage against critical illnesses or even optional surgeries. As a part of financial planning, it’s important to consider your individual needs and your family’s requirements before choosing a health insurance plan.

Key features of health insurance:

  • Helps meet steep medical costs with financial aid in exchange for a premium
  • Tax benefits on the premium paid for health insurance for self and for parents
  • Covers hospitalization expenses, cost of medicines and even expenses for health checkups

The inclusion of guaranteed return products

Guaranteed return products are investment options that offer a steady stream of income or assured returns when the investment tenure matures. This can be an excellent safety net for people looking for a secure investment option.

The investments made in these products are systematic and done over the long term, so it helps individuals take care of their retirement planning as well. Some examples of guaranteed return products include investments in Public Provident Funds, National Pension System, and even endowment life insurance plans.

Key features of guaranteed return products:

  • A guaranteed amount of returns at maturity that makes financial planning easier
  • Many investment options, most of which even offer tax benefits
  • Generally possess lower risk than other investment options


These key changes will, in all likelihood, be reflected in the financial planning process of every savvy investor as we move into the new normal. You too can keep pace with these changes by opting for the many long-term investment options offered by RBL Bank. Among our plethora of financial products, you’ll find health insurance plans, life insurance solutions, deposits and savings accounts that help you save up for emergencies. Head on to our digital platform today to include these essential investment options and financial products in your financial planning process. To know more, visit www.rblbank.com

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