Home>
Benefits of COVID Insurance

Benefits of COVID Insurance

Life post-Covid is entirely different. Be it personal life of everyone, global health status, socio-political face or the economic situation, Covid-19 has taken a toll on every sphere of life. So many people have lost their lives while most of us have suffered great personal as well as financial los

Disclaimer: In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.

Written by

Alok Mishra

Insurance Writer

Alok Mishra is a Digital and Content Marketing specialist with 10 years of experience. He has spearheaded Web Content, Social Media & Branding, and Community Building initiatives to drive growth for prominent brands.

Reviewed by

Bhaskar Sinha

Insurance Expert

8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective trainings and Key Account Management.

COVID-19 Situation in India

Since the outbreak of the novel Coronavirus, Indians is struggling both economically and physically, with the current active cases. Financial planning and following active safety measures is more crucial than ever. To survive this tough time, you must be on top of your toes, especially by understanding the benefits of COVID insurance before it gets too late.

In India, many people still do not feel fully secure and financially protected in case of an unfortunate event. Some of them also believe in the misconception that to avail the benefits of COVID insurance, they will have to pay high premium amounts. However, that is not the case as term plans are known for providing affordable coverage at different life stages.

Moreover, if you look at the big picture, it is better to pay small premiums regularly than being in a financial crisis later in case of a medical emergency.

Generally, the key life objectives for most people are child's education, retirement and child's marriage. What they forget is that the most critical aspect is to be financially prepared for health emergencies.

As COVID-19 disease is spreading unstoppably, you never know what may affect you next. With the rising cases, the healthcare rates are also touching skies. You may not be able to avail quality treatment if you lack significant funds. That is why you must know all about the benefits of COVID insurance to prioritize the health and wellness of yourself and your family.

COVID Insurance Benefits

Following are some of the most important benefits of COVID insurance:

Financial Security for Loved Ones
Life Cover Available at Affordable Premium
Simplified Claim Settlement Process
No Worries About Inflation
Income Tax Benefits

Benefits of Life Insurance Plans

Let’s now understand the benefits of COVID insurance in detail below:

1. Financial Security for Loved Ones

One of the main benefits of COVID insurance is providing financial security to your family after your unfortunate demise. It means if you get infected with Coronavirus and could not survive, your dependents will receive the full amount of the sum assured. The money can be of great help for your family to continue their lifestyle without any hindrance when you are not with them.

Generally, most of the term insurance plans have a flexible tenure which you can choose as per your needs. That means if anything happens to you during the policy tenure, then the insurer will pay the sum assured to the policy nominee. You can even buy term insurance for a longer policy tenure of up to 30 years. Some renowned insurance companies offer term insurance plans with policy term ranging from 10 years to 40 years, or even more.

2. Life Cover Available at Affordable Premium

Term insurance plans have lower premiums than most of the other types of life insurance policies, and they give you a high cover in return. Besides, a term plan offers security for your loved ones in case of your unfortunate demise, by providing the Guaranteed Death Benefit. Your dependents can make use of the insurance payout as per their requirement.

With such insurances, you can be assured that you are making a smart decision as you will be able to keep your family and loved ones financially protected, even when you are not be around to look after them.

By investing a small amount in these plans, you and your family can avail various benefits rather than regretting later. Come to think of it, while you may not be able to stop unfortunate events from taking place, you sure can develop a safety net for your loved ones. So, when you are not around, the dependents are entitled to receive the sum assured. Generally, most of the individuals make their family members as the insurance nominee.

Given the current gloomy environment full of risk and uncertainties, the benefits of COVID insurance acts as a light of hope during this pandemic.

3. Significant Life Cover at Affordable Premiums

Most of the insurers that sell term insurance plans have fast claim settlements. Think of it as one of the primary benefits of COVID insurance to help you stay safe and get the claims settled in the least time possible.

One of the COVID insurance benefits that falls in line with social distancing norms is that the insurers give a cashless/online settlement option so that you do not have to get into direct contact with the insurance agents. It will help you maintain social distancing, and your claims will be settled quickly.

Also Read: Why Should you Consider Claim Paid Ratio?

4. No Worries About Inflation

Healthcare costs have dramatically risen. So, in case of a medical emergency, people end up spending their savings, which takes a toll on their future plans. Studies show that most people primarily depend on their savings when it comes to tackling the medical crisis.

With COVID insurance benefits by your side, you need not worry about the rising inflation. The benefits of COVID insurance that your family will receive after you, will be sufficient enough to help them maintain their lifestyle.

5. Income Tax Benefits

You can avail tax benefits on the amount you pay as term insurance premium, under Section 80C. Alongside, the premium paid towards critical illness benefit is covered under Section 80D of the Income Tax Act, 1961.

The lump-sum amount received by nominees as the sum assured/death benefit is also exempted from taxes under Section 10 (10D).

COVID Insurance: A Must for Your Loved Ones

There are many reasons to have a term insurance policy in place besides COVID-19 also. The drastic shift in our lifestyle has made us more prone to a wide range of health disorders. Travelling, hectic work schedules, bad eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems. On account of this risk, it is time to prepare a financial safety net around your family and let them avail the benefits of COVID insurance.

If you buy term insurance at a young age, you will have to pay less for the policy. Premiums for an insurance policy increase with one's age because the associated health risk also increases.

1. Consider Your Needs, Not that of Your Peers

The need of life insurance is realized based on various spheres of an individual’s life. Hence, the choice of a suitable life insurance plan must be made after carefully analyzing your needs. It is advisable to avoid being influenced totally by peer recommendations. It is because what works for an individual may not be suitable for others.

2. Compare Policies Online First

Knowing the benefit of life insurance policy is crucial before you invest in it. You can do this easily by comparing various life insurance policies online. Check for the differences in terms of policy features, premium, insurer’s reputation, to name a few. With a proper understanding of the policy terms, you can easily make an informed choice.

3. Choose a Suitable Policy Period

Selecting the right policy period is as important as its sum assured. Hence, you must choose a life cover till the time you want to continue working in life, which can be at the age of 50, 60, or even beyond. Keep in mind that the policy period does determine the premium payable. So, make a suitable choice accordingly.

4. Check Claim Settlement Ratio of Chosen Insurer

In case you opt for a pure term plan, the benefits of life insurance will only be known to the policy nominee after you are not around. Therefore, it is crucial that you check the insurer’s ability to settle claims received. This can be done by checking their claim settlement ratio, as declared in the IRDAI report.

Why Should You Get COVID Insurance Now More Than Ever?

The answer is that we are living in the most uncertain of times today. With so many people getting infected with Coronavirus, you never know what awaits you next. By getting a suitable insurance plan, you can avail the benefits of COVID insurance and secure your family’s future in this challenging time. Now is the time to decide how you want to build a safety net for your family to prepare them for the worst. While the premiums are very nominal, the benefits of COVID insurance plans are worth the price payable. We, at Max Life Insurance, offer comprehensive term plans that offers life cover for eventualities arising out of COVID-19 and hospitalization claims and others, as per the policy terms. With our term plans, you can build a solid financial support net for your loved ones. Besides, the ability to tailor this insurance plan for added protection allows you to meet your specific requirements as a policyholder. As previously stated, such a type of insurance allows you to choose from a variety of life cover options and ensure that the amount guaranteed is sufficient even in the years ahead. In your fight against COVID, be prepared with the right insurance policy for maximum coverage and check premium beforehand using online premium calculator.

Frequently Asked Questions (FAQs)

Q. Will the Term Plans available with Max Life Insurace Provide Cover if the policyholder passes away due to COVID-19?

Q. Is there any waiting period for claim filed under COVID insurance?

Q. Does my travel history affect the claim eligibility of COVID-19?

ARN:- May21/Bg/21

MAIN CATEGORY

Benefits of COVID Insurance

Get ₹1 Cr. Life Cover Starting @₹527^@7/month

COVID-19 Situation in India

COVID Insurance Benefits