Does Life Insurance Policy Provide Coverage Against Coronavirus?

The current outbreak of Coronavirus (Also known as COVID-19) has gathered a lot of awareness and attention. This outbreak has been huge and has impacted the lives of people worldwide. As the whole world is in fear of this new-born virus, the World Health Organization (WHO) has also declared it as a pandemic, however, it is a controllable pandemic.

As per the current statistics, COVID-19 has infected almost 8,844,171 and the death toll has raised to 465,460 worldwide. Based on the information given by the Ministry of Health and Family Welfare, in India, there are 174387 active cases of COVID-19 and 13699 people have died.

It is reported that coronavirus symptoms are the same as sore throat, fever, common cold, which can lead to pneumonia in critical cases. As it is a newfound infection, no cure or vaccination is available as of now. COVID-19 is fatal primarily in the case of people who are above the age of 60 years and those who have a pre-medical condition.

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With the rapidly increasing cases of a novel coronavirus, an obvious question that we need to know the answer is; will a life insurance policy provide coverage in case of the demise of the insured person due to coronavirus? Also, will a person be eligible to buy a life insurance plan after contracting the virus?

Considering the present times, it is of utmost importance to have a coronavirus term life insurance policy and this should be a part of your financial planning for 2021.

To answer these questions of our readers, here we have discussed it in detail.

What do You Mean By Coronavirus Term Insurance?

In the current scenario, coronavirus term insurance policy implies that in case of any eventuality caused because of a novel coronavirus, having the right life insurance policy will secure you and your loved ones.

By now each one of us is aware that there are no limitations to the spread of this coronavirus, therefore, even under the devastating conditions, a life insurance policy will come at your rescue. It is time to buy a coronavirus term life insurance policy as any eventuality will not come with prior notification.

For the Existing Policyholders of Life Insurance Policy

If a person passes away due to COVID-19 has a life insurance policy, then the beneficiary of the policy will receive the death benefit as a sum assured amount. The beneficiary or nominee needs to know that the death caused by any health-related issues is generally covered under a life insurance policy including the term insurance as well. This means that the beneficiary of the policy can claim for the death benefit in case of the demise of the insured during the tenure of the policy due to any eventuality including COVID-19.

According to the experts, the existing policyholders are covered under the policy. However, some life insurance plans have exclusion for a definite cause of death, demise due to coronavirus infection will be covered if an individual has an existing life insurance plan. Thus, in the rare case if a person dies from a pandemic illness then the nominee of the policy will receive the death benefit. 

If a Person Gets Policy Now, Will It Cover Coronavirus?

If a person plans to buy a life insurance policy in this day and age, then they should remember that the premium of the policy is determined by the insurer on basis of the health and medical history of the policy buyer. Hence, it is quite reasonable to reckon that a global health crisis like COVID-19 can have some impact on the premiums of the policy or policy acceptance if a person is currently in the stage of processing of the application. 

It is very much possible that the life insurance company may hold or even reject the policy if a person’s life insurance policy application is in process and if he/she has already been in contact with the coronavirus infection. As long as the insurance holder shows all the details correctly at the time of policy purchase, wherein he/she is not infected with the coronavirus, the insurer is liable to pay the death benefit to the nominee of the policy. The death benefit will be payable to the beneficiary, even if the insured dies due to coronavirus afterwards. 

However, while purchasing a policy one must go through the exclusion in detail and know the various aspects where they will not be covered.

What if Coronavirus is Covered Under Critical Illness in Life Insurance Policy?

Generally, payment of death benefits due to a health-related issue is not denied under the life insurance policy. However, the policyholder needs to consider the terms of life insurance riders, whose benefits are paid only if those terms are fulfilled. In case, COVID-19 is covered under the critical illness rider in a life insurance policy then its benefits will be paid out (or not paid out) based on the terms and conditions of the rider.

How Difficult is it Buying Term Life Insurance Policy at the Time of COVID-19?

COVID-19 has surely made people understand the importance of buying the life insurance policy. However, it has indeed become a challenge to buy term life cover in today's times.

If you are intending to buy a coronavirus term life insurance policy, you need to be prepared completely for the queries that will be asked by the different insurance providers in regards to the possibilities of you being infected with novel coronavirus before you can buy the term insurance policy.

Therefore, while buying the specific term insurance policy, listen to the questions carefully and answer them honestly. Do not provide any false or hide any sort of information. In case you have any symptoms in regards to novel coronavirus, buying a coronavirus term insurance policy will not only be difficult but challenging too.

Coronavirus Life Insurance – FAQ’s