Coronavirus Term Insurance

The outbreak of coronavirus has affected worldwide nations adversely.  Coronavirus, also known as COVID-19 has affected more than 20 million people worldwide and has claimed over 1 million lives so far. In India, a total of 27,892 cases have been confirmed of Coronavirus (as on 27th April 2020) and the death toll has reached up to 872 (as on 27th April 2020). 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, it is very important for us to be prepared against any type of unfavorable 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 purchase a life insurance policy after contracting the virus.

Further in this article, we have elaborately discussed everything you need to know about COVID_19 and life insurance.

What is Coronavirus (COVID-19)?

The coronavirus disease also referred to as COVID-19 is an infectious disease, which is caused due to a newfound coronavirus.

The ideal way to stop the prevention and transmission of novel coronavirus (COVID-19) is to be well-informed in regards to this infectious disease. It is of prime importance to understand the cause and spread of the coronavirus to battle this disease.

Primarily, make it a point that you wash your hands at regular intervals for a minimum of 20 seconds with an alcohol-based hand-wash. Next, avoid touching your face, mouth and nose and use hand sanitizer from time to time.

The novel coronavirus (COVID-19) infection spreads principally through either by salivation or release from the nose when a person who coughs or sneezes, so it's significant that you likewise practice respiratory hygiene (for instance, by hacking into a flexed elbow).

Right now, there are no particular vaccination/ immunizations or medications for COVID-19. In any case, numerous continuous clinical preliminaries are assessing potential medical treatment.

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 of time coronavirus term insurance essentially implies that in case of any eventuality caused due to the COVID-19, 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 since time innumerable. COVID-19 insurance is important and this will be one of your important investment and protection simultaneously.

In the present times, 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 provider in regards to the same.

For individuals who are thinking about whether they should purchase 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.

Let’s take a look at the process of COVID-19 life insurance claims of the three companies.

Coronavirus Insurance Claim Procedure for Exide Life Insurance

Exide Life Insurance Company is committed to helping the customers during this critical time. As per the guidelines of the company, if the insured person dies as a result of COVID-19 during the tenure of the policy then the claim will be admissible irrespective of the product. Concerning the current circumstances, the company is actively offering services and settling claims through the online platform. Here is the process of claim registration.

Easy process of Claim Registration for Covid 19

  • The beneficiary of the policy can download claim initiation form by visiting the official website of Exide life insurance.
  • Once the nominee downloads the form fill in the hospital/ medical reports if the death has occurred in the hospital.
  • Submit KYC of the life assured and KYC of the nominee.
  • Submit an original death certificate issued by the local authorities or Municipal Corporation. If the death certificate is not available then the nominee will have to submit the report issued by police authorities declaring the death of the policyholder.
  • Bank account details.
  • Once the beneficiary fulfils all these requirements, the company will verify the claim filed and initiate the claim.

Coronavirus insurance Claim procedure for Max-Life

During this nationwide lockdown, Max Life Insurance Company is accepting claim initiation through email & Whatsapp. The documents that should be kept handy while filing a claim are:

  • Original policy documents.
  • Attested/ original copy of the death certificate issued by the local municipal authority.
  • Death claim application form.
  • Photo identity proof of the beneficiary like Aadhaar Card, PAN, Passport, etc.
  • Bank account or cancelled cheque along with the attested NEFT mandate form by the authorities of the bank.

Additional documents required based on the cause of death due to Covid 19/coronavirus

Natural/medical death

  • Statement of attending physician
  • Medical records which include test report, death/ discharge summary, admission notes, etc.

Accident/unnatural death

  • First information report (FIR) copy or police complaint/panchanama
  • Copy of viscera report/ autopsy and post-mortem report.
  • Copy of charge sheet/ final police investigation report.

Once the beneficiary has all the documents they can send it to the insurer via mail or Whatsapp. The insurer will share all the information through SMS or email in order to keep the nominee updated on the claim status.

LIC Claim Process for Coronavirus/Covid-19

The beneficiary of the policy can submit the claim form, copy of policy schedule, and death certificate at the nearest branch office if it is operational. In case the nearest LIC branch office is not operational due to the current lockdown, then the nominee can e-mail the claim intimation form along with the required documents to the Nodal person as mentioned in the table below.

List of Nodal Persons of LIC India

Zone States / UT Covered Head Quarters E-mail
Northern Zone Delhi, Punjab, Haryana, Rajasthan, Himachal Pradesh, Chandigarh, Jammu & Kashmir, Ladakh New Delhi nz_rmcrm@licindia[dot]com
North Central Zone Uttar Pradesh, Uttarakhand Kanpur ncz_rmcrm@licindia[dot]com
Central Zone Madhya Pradesh & Chattisgarh Bhopal cz_rmcrm@licindia[dot]com
East Zone West Bengal, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Andaman and Nicobar Islands Kolkatta ez_rmcrm@licindia[dot]com
South Central Zone Andhra Pradesh, Karnataka, and Telangana Hyderabad scz_rmcrm@licindia[dot]com
Southern Zone Kerala, Tamilnadu, Puducherry Chennai sz_rmcrm@licindia[dot]com
Western Zone Goa, Gujarat and Maharashtra, Dadra Nagar, Haveli, and Daman Diu Mumbai wz_rmcrm@licindia[dot]com
East Central Zone Bihar, Jharkhand and Odisha Patna ecz_rmcrm@licindia[dot]com

For New Policy Buyers

If a person is planning to purchase a life insurance policy at this point in time then they should keep in mind that the insurance company determines the premiums of the policy based on the medical history and health of the policy buyer. Thus, a global health crisis like this may have an impact on the policy premiums and policy acceptance, if the individual is currently in the stage of the application process.

Moreover, it is also possible that if the individual’s policy application is in the process then the insurer may reject or hold the policy if he/she is contracted with the coronavirus infection. The policy buyers need to know that as long as they have shared all the details correctly with the insurer at the time of purchasing the policy, where the person is not affected with the COVID-19 the death claim will be payable to the nominee even if the cause of death is from coronavirus infection.

Final Words

Even though COVID-19 is a newly discovered disease, it 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, it is very important that you check the policy details before purchasing the one and be aware of the terms and conditions of the policy.

In this time of the controllable pandemic, it is important to buy a 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 a get a clear understanding in case of any dilemma or clarifications if required.

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Written By: PolicyBazaar - Updated: 03 August 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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