India is one of the worst affected countries in terms of the number of active cases. The cases of COVID-19 are rapidly increasing in the country. In these unprecedented times, ensuring a secured future for the family is more important than ever. If you are the single breadwinner of the family, it is always in the back of your mind to create a safety net for your family. In a situation like this, term insurance plans are the right insurance product that provides the right risk coverage for the family and ensures that all the financial needs of the family are taken care of in case of any eventuality.
Read further to know that does the term insurance policy covers death due to COVID-19 or not.
If the insured person dies due to COVID-19 has a term insurance policy then the nominee of the policy will get the death benefit as the sum assured amount. However, if you are looking forward to purchasing a term insurance plan now then it is important to keep in mind that the premium rate of the policy is determined by the insurance company on basis of the medical history of the policy buyer.
As long as the insurance holder discloses all medical information to the insurer at the time of policy purchase, wherein he/she is not infected with the coronavirus, the death claim filed will be payable to the beneficiary of the policy. The death benefit will be paid even if the cause of death is from coronavirus infection. However, to be on the safe side make sure you go through the policy exclusions in detail before making an informed choice.
Before zeroing in on a plan to ensure financial protection to the family in the long-term, it is important to understand why having a term insurance plan is important especially in these unprecedented times.
If we talk about the insurance coverage, then a term insurance policy offers the most cost-effective way to provide financial protection to your family and loved ones. The pure term plan offered by term insurance is specifically designed to provide higher insurance coverage at minimum premium rates. The plan provides financial protection to the family in case of the unfortunate demise of the insured person during the tenure of the policy. Moreover, term insurance plans also take care of the future liabilities of the family.
With a minimal premium rate, the cycle of the premium payment depends on the option chosen by the insurance holder at the time of policy purchase. During this spread of the pandemic, people are now more concerned about creating a financial backup for their family, thus they are preferring to purchase term insurance plans over other term insurance products.
The term insurance industry has witnessed a massive boost in policy purchases since the outbreak of COVID-19. Let’s take a look at the major reason for the boost in the purchase of term insurance policies.
The three prime benefits of the term insurance policy are life protection, tax-saving, and minimum premium rates as compared to other insurance products.
If an individual is planning to purchase a term insurance policy during this time, then they should keep this in mind that the premium rate of the policy is determined by the insurance company based on the medical history and health of the policy buyer. Hence, it is quite sensible to reckon that a global health crisis like coronavirus can have some impact on the premium amount of the policy or in the process of policy acceptance if a buyer is currently in the stage of application processing.
It is very much possible that the insurer may hold or even reject the policy if a person’s term insurance policy application is in process and if he/she has already been in contact with the coronavirus infection. The insurance company is liable to pay the death benefit to the beneficiary of the policy until the time the policyholder shows all the details accurately at the time of purchasing the policy, wherein he/she is not infected with the coronavirus. The insurer will pay the death benefit to the nominee, even if the insured person dies due to coronavirus afterward.
However, while buying a policy the insurance buyer must go through the exclusion in detail and know the various factors where they will not be covered.
Any unforeseen event like this can happen anywhere, anytime. Thus, it is imperative to be pre-planned and secure yourself and your family with a term insurance policy. Essential or not essential cover yourself and your family with a term insurance policy. Coronavirus is a fatal infection and is more than a growing problem. So, think and make the right choice.