Coronavirus Term Insurance
The pandemic indeed has forced financial security to the minds of almost every individual in an unprecedented way. Throughout the nation, individuals are surely moving towards proactive buying amidst the concern growing in regards to the COVID-19. In these times of uncertainties, coronavirus term insurance needs to be an integral part of financial planning.Considering the severity that has been caused by the second wave of COVID-19, it is important to have a life insurance plan to secure the family's financial future. It is highly recommended to buy the life insurance plan at an early stage of life and enjoy the benefits. Moreover, an individual would end up paying less premium amount when the plan is bought at an early stage of life.
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
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Statistics Say!
The outbreak of coronavirus has affected worldwide nations adversely. As per the World Health Organization (WHO) reports, as of 2021, May 06 there have been a total of 155,506,494 confirmed cases that include 3,247,228 deaths globally. Besides, 1,170,942,749 doses of vaccines have also been administered as recorded on 2021, April 04.
In India, as per the data shared by the Ministry of Health and Family Welfare, there are 3645164 active cases and 234083 deaths as of 2021, May 07. About 17612351 have been discharged as well. The growing impact of this virus has become a matter of great concern for our nation.
Although every possible step has been taken by the government to stop the spread of COVID-19, we need to be prepared against any type of unfavourable situation. Having a life insurance policy is one solution to protect yourself and your family against any type of eventualities. However, the question arises whether the life insurance policy provides coverage to the family of the insured for death due to coronavirus and can an individual buy life insurance policy after contracting the virus.
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
Second Wave of COVID-19
By now, we all know what is COVID-19 or coronavirus. This virus has become a nightmare for each of us. It is everywhere, and the second wave of COVID-19 has been deadly. Although in the initial months of 2021, there was a dip in the cases. However, the second wave is stronger with complex mutations. The hospitals, crematoriums are running out of spaces. In the second wave, the rise in the cases has been exponential.
In these tough and emergency times, having insurance is a necessity more than a benefit. With the ensuing global pandemic, the importance of coronavirus term insurance is more pronounced. Even now people are in a dilemma whether or not a term insurance covid cover exists.
Wondering, Why Insurance During a Pandemic?
Well, we are living in times of both health and financial emergencies. The repercussion for the COVID-19 might vary from one person to another; however, the cost for the treatment of COVID-19 is most expensive for a major population.
For instance, an individual who is tested positive for COVID-19 needs to take utmost care and precautions for a minimum of 14 days. If required, the person needs to get hospitalized too. The hospitalization process will add up to the treatment expenses.
Now calculate hospitalization for 14 days without a ventilator. It would be somewhere around Rs 2 lakh. The costs for the patients on ventilators are high considerably. Well, these are just estimated figures that will vary for both public and private hospitals. These are expenses that can easily create a hole in anyone's pocket. Besides, what if
someone who is positive passes away and is the primary earning member of the family.
Well, a situation like this is scary.
Under such unfortunate circumstances, a term insurance policy will be much helpful.
What Does Coronavirus Life Insurance Imply?
The World Health Organization has already declared the current situation a controllable pandemic.
India has also seen a rise in the number of cases, besides the government has already initiated a complete lockdown along with the suspension of all transportation both national and international. As of now, people are staying home and avoiding going moving out of their respective homes unnecessarily.
At this point coronavirus term insurance essentially implies that in case of any eventuality caused due to the COVID-19, a life insurance policy will take care of you and your family.
The importance of this coronavirus insurance cannot be overlooked as the spread of this infectious disease has got no limitations. A life insurance cover will secure you and your family even under devastating situations.
Undoubtedly, the outbreak of this global crisis, the coronavirus is a wake-up call for all those who thought that buying a life insurance policy is not important and have been avoiding it for a time innumerable. COVID-19 insurance is important and this will be one of your important investment and protection simultaneously.
In the present times, a coronavirus term insurance policy is important and a major part of your financial planning. The earlier you buy a life insurance policy, the longer you will be covered and the less premium you will end up paying.
What Are the General Limitations to Coronavirus Life Insurance?
The government has successfully implemented lockdown in the entire nation to check the spread of this infectious disease coronavirus (COVID-19).
We do not know, what would the ramification of this infectious disease. However, when it comes to a life insurance policy, people who already have the policy need not worry much. However, any applicant applying for a life insurance policy now will witness an impact.
The treatment towards your life insurance policy application will vary from one provider to the other. Therefore, it is important to check with the different insurance providers in regards to the same.
For individuals who are thinking about whether they should purchase a life insurance policy during a pandemic like COVID-19, the short and simple response to it is yes. One
must not hang tight for a worldwide wellbeing emergency to instate to take vital money-related assurance for you and your family.
A pandemic doesn't mean end times. Life insurance is a management tool in case of any perils, so whenever you have remarkable obligations or people who rely upon you for money, you ought to have a life insurance policy set up to shield your friends and family from any financial crisis under any untoward situation.
Deaths Due To Coronavirus Covered by Life insurance for Existing Policyholders
If a person dies due to coronavirus had a life insurance policy, the beneficiary of the policy will receive the sum assured amount as the death benefit. If the person demised had a life insurance policy, then the beneficiary or nominee of the policy needs to know that death occurred due to health-related problems, are generally covered by a life insurance policy. This means that in case the existing policyholder dies due to COVID-19 then the death benefit will be paid to the nominee or beneficiary of the policy.
Seeing the ever-increasing need for life insurance policies many life insurance companies like LIC, Max life Insurance & Exide life Insurance have come up with a dedicated process of COVID-19 to deal with these challenging circumstances.
Should I Buy a Term Insurance Covid Cover?
The importance of having a term insurance plan with COVID-19 financial security can surely not be undermined in the toughest of times that the world is facing. A coronavirus term insurance will be helpful to cover the risks in future. A term insurance plan will offer a financial safety net to the family in case of any uncertainty.
Compared to any other life insurance plans, the term insurance premium is cost-effective. While buying a term insurance plan, choose the cover significantly to cover the family. In case, the term insurance plan is not bought ensure that the financial future of the family is safe when the primary earning member is not around anymore.
Think wisely and act judiciously!
Recovered from COVID-19? Finding Difficult to Buy a Life Insurance Policy
Any individual who has recovered from the coronavirus might have a tough time buying the life insurance policy. This might happen as the insurance companies in India need a waiting or cooling period of 1-3 months when the person recovered from coronavirus is applying for the life insurance plan. Besides, one might undergo extra medical tests too.
The insurance companies are asking for an additional test to analyze and identify the category of risk of the applicants. In case the covid survivor tests negative for COVID-19 after 3 months of the cooling period then it reduces the chances of relapse and enables to avoid any challenges in the claim.
For anyone planning to buy a life insurance plan after recovering from COVID-19 should understand what would happen in the case of concealment.
Delay in the Issuance of Life Insurance Plan
There are instances of people who developed medication complications even after recovering from coronavirus that could be life-threatening too. The compensation quantum in a life insurance plan is a significant amount. So, when the insurance company accepts such risky policies, it will become a challenge to honour the claims later in case people get affected because of post-covid medical complications.
Because of this, insurance companies have raised their guards before accepting any new applications for the policy. In the case of a life insurance plan, the covid survivor will obtain a waiting period of 1-3 months or even more on the premise of the criticality and required prevalence of underwriting.
And in case an individual is a recent victim of coronavirus, the wait will be even longer. A negative test for the COVID-19 survivor is a mandate and the waiting period begins from the result date of the COVID-19 negative test. This is to mitigate any risk of post covid after effects. In case an individual recovers earlier, and then the application will be accepted faster.
The Concealment Might Result in Later Rejection of Claim
Any insurance policy is issued in complete faith by the insurance company that all the information provided by the policyholder will be correct. If anyone is trying to conceal the history of COVID-19 intentionally, this would lead to the rejection of the claim.
The applicants for the life insurance policy are required to disclose the material facts in the form of a proposal that includes the pre-existing medical conditions. Besides, some comorbidities are becoming critical in regards to the COVID-19 and insurance companies have increased the testing to identify any such ailments while issuing a new policy.
The New Normal
Undoubtedly, many people who have survived COVID-19 might not have coronavirus term insurance or adequate insurance. These people now understand the value of having an insurance policy and might want to buy a life insurance policy to protect the financial future of the family. Well, until herd immunity is developed against this virus the scrutiny is likely to be increased and the waiting period is going to be the norm with the insurance companies. So when planning to buy a term insurance covid cover, the individual should be prepared for a situation like this.
To Conclude
Remember, no matter what, for the family ‘You’ are the difference. Take all the necessary precautions, avoid large gatherings outside, wear a double mask, use sanitizer regularly, and so forth.
The COVID-19 is covered by most of the existing life insurance policies. However, the coverage offered by the policy and claim process may vary from policy to policy. Thus, you must check the policy details before purchasing one and be aware of the terms and conditions of the policy.
In this time of the controllable pandemic, it is important to buy coronavirus term insurance and include it in your investment portfolio, which will provide you with a suitable cover in case of any eventuality. Undoubtedly the world is fighting hard to fight hard with this contagious virus and the importance of possessing a coronavirus term insurance should not be neglected at any cost. It is important to secure the future of you and your close ones with the right coverage. If you already have an existing term insurance policy you need not worry about the financial part and it is better to get in touch with the respective insurance provider and get a clear understanding in case of any dilemma or clarifications if required.
Protect the future of the family against any uncertainty.
Stay Safe!
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FAQs
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Q: Will the life insurance policy includes COVID-19 claims?
Ans: Yes, death claims caused due to COVID-19 is covered under the terms and conditions of the policy in case of a pre-existing policy. However, if you are planning to purchase a new policy then it may vary as per the terms and conditions of the policy. -
Q: How can I Know the claim status of the policy?
Ans: You can check the claim status of the policy by visiting the customer care section of the insurance companies. You can also e-mail or whatsapp to check the claim status of the policy. -
Q: How can I pay my policy premium?
Ans: You can pay the premium of the policy by visiting the official website of the life insurance company. The premium amount can be paid via credit card, debit card, NEFT, RTGS, or phone wallets like Paytm, google pay, BHIM, etc. -
Q: What will happen to the claims already initiated and not disclosed yet?
Ans: The life insurance companies are in the process of settling claims that have been already initiated. In case of any queries, the nominee can contact the insurer through e-mail. -
Q: Why it is important to submit all the documents/ records as required by the company?
Ans: All claims are verified and settled by the company on the basis of information that you submit in the form of documents in connection with the claim. It is advisable to the beneficiary to provide complete information to the insurer for a smoother and faster claim processing.
