Term Insurance Plan for COVID-19

Today, we all have experienced and understand the chaos it brings. Besides bringing the world to a halt, COVID-19 has also ruined many families, wherein multiple breadwinners have lost their lives. 

Though we cannot control any of this, we can make sure our families stay financially secure during such eventualities. Term insurance helps you easily achieve this goal by buying a term insurance plan for COVID-19 to safeguard your loved ones in case you lose your life to coronavirus.

What is Term Insurance for COVID-19? 

Term insurance for COVID-19 is a regular term insurance plan that offers coverage in case of death due to coronavirus. With these plans, you can secure a large life cover for your family for a long duration at affordable premiums. Let us take a look at the benefits and need for a COVID-19 term insurance plan in India.

What are the Benefits of Buying a Term Insurance Plan for COVID-19?

Here is a list of how term insurance benefits you with a COVID-19 cover:

• Family’s Financial Security: With COVID-19 term insurance, you can ensure the financial stability of your loved ones in the event of your unfortunate demise due to COVID-19. 

• Income Replacement: The payout from a Coronavirus term insurance can help your family with your income replacement in your absence. This is especially beneficial in case you are the main breadwinner of your family.

• Debt Repayment: The term insurance for COVID-19 payout can help your family take care of the outstanding debts that you may leave behind in your absence. 

• Tax Saving Benefits: You can claim term insurance tax benefits as per the prevailing tax laws. Under Section 80C, the premium you pay for your term insurance policy is exempt (up to 1.5 lakhs). And under Section 10(10D), the death benefits your family will receive will also be fully exempt.

• Peace of Mind: Term insurance for COVID-19 provides you with the required peace of mind. With these types of life insurance, you feel secure for your family, since you know that they won't have to face any financial trouble in your absence.

What is the Need for a COVID-19 Term Insurance Plan?

With over 4,300 active COVID-19 cases, the virus continues to evolve and affect more and more lives. The main purpose of a COVID-19 term insurance plan is to offer financial safety for your family, and this rough time highlights the importance of life insurance. COVID-19 is highly contagious and spreads at an unprecedented speed. No matter how many precautions you take, it is still uncertain if this virus can infect you. To provide your family with a financial shield in case you die because of this deadly virus, you must have term insurance that covers COVID-19.

However, you must know that the term insurance company may check your past health records and ask you to go through some medical exams, including COVID-19. In case you test positive for coronavirus at the time of purchasing the policy, the insurance company can refuse to sell you the policy.

How to Buy COVID-19 Term Insurance Plans in India?

Here is how you can buy coronavirus term insurance plans in India from Policybazaar:

Step 1: Visit the term insurance page of Policybazaar

Step 2: Fill in the required details like name, gender, and other contact information

Step 3: Select the right annual income, occupation type, educational qualification, and smoking habits

Step 4: Choose the best COVID-19 term insurance plan and proceed to pay

Term Insurance for Recovered COVID Patients

If you were infected with coronavirus and have recovered, it might be a little tough for you to get a term insurance policy with COVID-19 coverage. It is because the insurance companies want 1-3 months of cooling period after the patient has recovered. After the cooling period, you may have to go through further medical exams before making the final purchase of term plan with COVID-19 coverage. 

Does My Existing Term Policy Cover COVID-19?

The coronavirus pandemic has caused multiple deaths or badly affected the health of those who were infected. Most insurance companies have now included death by the coronavirus in their policy conditions for which your family or beneficiary can make the claim. 

Besides, insurance companies now treat death by the COVID-19 as general death and accept claims raised by the deceased's family. Your family must submit valid and relevant medical records provided by the hospitals or doctors.

What Factors Affect the COVID-19 Term Insurance Premiums?

The factors affecting your COVID-19 term insurance premiums are as follows:

• Current age: Your age affects the premium cost. For example, if you are young, you probably have to pay a lesser premium compared to an older person. Because older people are more likely to develop any critical illness/disease such as cardiovascular disease, diabetes, etc. and they are more like to raise a claim

• Pre-existing illnesses: If you have any pre-existing illness/disease, it might affect your premium cost because these diseases increase your probability of raising a claim.

• Lifestyle Habits: If you have a habit of regular smoking or consuming tobacco, you might have to pay a higher premium than someone who does not smoke. 

• Add-ons: If you add term insurance riders such as critical illness cover, accidental death cover, etc., the additional nominal premiums will be added to the base plan. It is because these extra benefits strengthen your base policy and provide extra coverage.

Final Thoughts!

Follow the safety guidelines issued by our government, wear masks, wear gloves, maintain social distancing to avoid contracting COVID-19. Your existing term insurance plan can provide your family financial coverage in case you die after getting infected by the coronavirus. If you don't have any term insurance plan, you can simply buy a policy with suitable coverage at an affordable premium cost to be on the safe side. It will give you mental peace and your family financial support.

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