Does Your Life Insurance Provide Coverage Against Corona?

Does Your Life Insurance Provide Coverage Against Corona

Covid-19 is a novel coronavirus that has brought the world to a standstill. The world is reeling under its adverse effects. Economies are hard hit, with people losing their livelihood. This highly contagious viral disease has disrupted lives and has become a major health concern for all governments all around the globe. 

People suffering from coronavirus infection show different symptoms. Some have mild cough, cold and fever and can be easily treated while others may exhibit serious respiratory problems and require immediate hospitalisation. Covid-19 primarily turns out to be fatal for those above 60 years of age or those having pre-medical complications. In either case, the person who tests positive for Covid-19 needs emotional and financial support. 

This is where insurance plans come in handy. Health insurance plans provide financial backup to cover the expenditure on treatment and life insurance plans help to ease the financial burden of the insured’s family in the unfortunate case of death due to Covid-19.

The pandemic has brought the need to be financially secure, to the forefront. While India fights the second wave of Covid, more and more lives are endangered. Having the protection of appropriate life insurance is imperative today, more than ever. While people are well-aware of the importance of a good insurance policy they still have so many questions in mind regarding the new virus and available insurance plans. 

Need of Insurance during the Pandemic

Coronavirus has put us on the verge of health as well as a financial emergency. Surviving this disease financially may be out of reach for many. Not to mention, if the primary bread earner of the family passes away, the grieved family would struggle to make their ends meet. All this makes buying a Covid life insurance plan all the more necessary, as an eventuality does not come with any prior notification. If you are someone who is still contemplating investing in a life insurance policy, it is high time that you stop procrastinating and find a plan for yourself that would help your family survive your passing away due to this deadly disease.

What is meant by Coronavirus Life Insurance?

In the ongoing pandemic, a coronavirus term life insurance policy will secure you and your loved ones. As we know by now that this virus spares no one, it spreads to one and all alike. A corona life insurance policy can ease the financial burden if infected.

What does this mean for the existing Policyholders?

If any life insurance policyholder passes away due to Covid-19, then the appointed nominee/ beneficiary will receive the benefits as per the sum assured amount. A life insurance policy including term insurance generally covers death due to a health-related issue. This means the nominee of the policy is eligible to get the death benefits in case of the demise of the policyholder due to any eventuality including Covid-19, during the tenure of the insurance policy.

However, some insurance plan providers have an exclusion of some specific cause of death. Still, death by Covid-19 is covered and the beneficiary will be eligible to receive the death benefits.

As per the mandate by the Insurance Regulatory and Development Authority of India, irrespective of the policy you own, all the insurance providing companies have to offer Covid cover under their health insurance policy.

Coronavirus Insurance Policy

Theworld is wobbling under the effects of the coronavirus pandemic. Having an insurance plan that covers Covid-19 has become the need of the hour for all of us. As directed by the IRDAI, the insurance providing companies have to prioritise and accelerate the claims pertaining to the Covid-19. Insurance is an affordable way of preparing for any unforeseen contingency and securing the future of your loved ones. 

It does not seem likely that this pandemic is going away anytime soon. Life insurance plans come with a wide array of benefits and thus having a coronavirus life insurance plan can be very beneficial, as it is specially designed to take care of the financial struggles your family may have to face if this highly contagious disease grabs you in its clutches. 

What If The Existing Life Insurance Policy Covers Coronavirus Under Critical Illness?

Generally, the nominee is eligible to receive the death benefits if the death of the policyholder is due to some health-related issues. These benefits are normally, not denied by the policy providers. However, the policyholder needs to examine the term of the life insurance riders, as the term needs to be fulfilled to receive the benefits. Terms and conditions of the riders will be taken into consideration even if the Covid-19 is covered under the life insurance plan. 

One must bear in mind that in the case of a life insurance policy with critical illness benefits, the claims may or may not be entertained. It is therefore important that you read all the offer documents carefully.

Coronavirus Specific Health Insurance Plans Available in India:

Having coronavirus insurance is imperative, however, it is also prudent to be under the protection of a health insurance policy as per your needs. You can either go for a regular health insurance plan that gives complete coverage of all medical expenses, including the expenses made towards the treatment of Coronavirus. Or you can opt for Covid-specific health insurance policies. The Insurance Regulatory and Development Authority of India has already launched two short-term health policies, specially designed to cover the expenses of only coronavirus treatment.

  1. Corona Kavach Policy for Covid-19

    It is a standard health plan that is a single premium policy and covers the expenses that you incur due to hospitalisation because of Covid. This insurance policy has an affordable premium, is indemnity-based and covers you on an individual or a family floater basis. The policy would offer a cover for you, your spouse, your dependent children, your parents and even your parents-in-law under this policy.

    The term of the policy can be 3.5 months, 6.5 months and 9.5 months. It is offered by all private as well as general insurance providers and offers coverage against homecare treatment expenses, AYUSH treatment expenses, pre-hospitalization expenses, post-hospitalization expenses and also road ambulance expenses. The leading feature of this Corona Kavach is that it has a very short period of waiting that is only 15 days. By paying a slightly higher premium, you can avail daily cash benefits as well.

  2. Corona Rakshak Policy for Covid-19

    Corona Rakshak Policy is also a health plan launched under the guidance of IRDAI. A standard health insurance plan specially designed to cover the expenses incurred for the treatment of Covid-19, just like Corona Kavach Policy. However, Corona Rakshak is a fixed benefit health insurance plan that pays the policyholder a lump sum benefit. This sum is equal to 100% of the sum insured. The insured must test Covid-19 positive at a government recognised centre and should be hospitalised for more than 72 hours at a stretch to receive the benefits.

    The policy offers coverage on an individual basis for the sum insured options, which can range between Rs 50,000 – Rs 2.5 lakhs in the multiples of Rs 50,000. People between the age group of 18 years – 65 years can buy this policy.

    It is a short-term insurance plan that can be availed for 3.5 months, 6.5 months and 9.5 months. The policy is self terminated once the benefits are paid. The policyholder will be eligible for the benefits of the policy only if infected with the coronavirus. The policy has a waiting period of 15 days only. As it is a benefit based policy, it does not offer a lifetime renewability offer.

The covid-19 health insurance policies cover the in-patient hospitalization expenses, pre and post hospitalisation expenses and thus, takes off the financial pressure from you. As these are short-term plans the policyholder does not have to bear the burden of paying the health insurance premiums for a lifetime. So one must avoid procrastinating and buy a Corona health insurance plan at the earliest.

How Difficult Is It To Buy Term Life Insurance Policy During The Time Of Covid-19?

Coronavirus has indeed made us all aware of the need to have the security of life insurance plans in case of any eventuality. But it has become a challenge in today’s time to buy a life cover. In case you suffer from certain medical conditions or have already been affected, the life insurance company can hold or even deny your application. You may even have to pay a much higher premium. 

Therefore, to buy a coronavirus insurance plan you need to be fully prepared to answer the array of queries by the insurance providers, regarding your chances of getting infected with coronavirus before you can own an insurance policy. In case you suffer from any symptoms of Covid-19, buying the term insurance policy can prove to be very challenging.

You must answer all the questions asked, with utmost honesty. Avoid giving any false information or hiding any crucial information from your insurance provider. 

Conclusion

The world has been engulfed under the spell of coronavirus. In spite of all the efforts made by the government, the country is still reeling under Covid-19. The lives of numerous people have been affected by this virus. Thisnovel and a deadly virus have wreaked havoc everywhere. People have lost their livelihood and loved ones.

Masks, social distancing, and sanitisation have become the ‘new normals’. This virus can infect anybody, anytime. So in such a time where nothing is predictable, you should keep yourself and your loved ones safe under the protection of a life insurance policy. An insurance policy will ease the financial burden in the case of any eventuality. It will give emotional support and confidence to the infected member of the family instead of worrying about the future and finances. 

Frequently Asked Questions

  1. How can I know the Covid-19 Term Insurance Claim status?

    Answer: To know the status you can either visit the website of the insurance providing company or you can get in touch with their customer support team. You can also send an email to their email ID, available on their website.

  2. Can I buy corona life insurance online?

    Answer: Yes, you can. Most insurance companies offer life insurance plans online. Once you have finalised which plan you need to buy you can visit the company website and buy it online. You can pay the premium through net banking, digital wallet or card payment etc.

  3. If I buy an insurance policy now, will it cover Coronavirus?

    Answer: If you plan to buy an insurance policy now, the insurance provider will determine the premium on the basis of your medical history and current health status. Thus, it can be concluded that the ongoing pandemic would have an impact on the policy acceptance or premium to be paid, especially if your policy is still at the application stage.

  4. I have recently recovered from Covid-19, can I buy a life plan?

    Buying a life insurance policy after a recent recovery may be a little difficult. You may have to undergo more pre-policy medical tests and may have a longer waiting period as well. It is recommended that you get in touch with the company and find their eligibility criteria.

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