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Does Your Term Insurance Plan Cover COVID-19?

Know how to safeguard your family's future with COVID term insurance

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The world is currently dealing with the most unusual public health challenge of the century, i.e. COVID-19 disease. This viral disease was declared as a pandemic by the World Health Organisation (WHO), claiming the loss of thousands of lives so far across the globe.

Several countries, including India, have imposed severe measures such as lockdown, to ensure the safety of citizens, while the clinical trials of drugs to treat the conditions are ongoing. People are practising self–isolation, working from their homes, avoiding large gatherings outside, and ensuring protection with term insurance providing COVID-19 financial protection.

You may be wondering if you need COVID-19 insurance to take care of your family in the event of an unfortunate event or not. Let us know more about how COVID-19 insurance creates a financial safety blanket for your loved ones.

Why Do You Need Term Plan with COVID-19 cover Now More Than Ever?

The importance of having a term plan with COVID-19 financial protection cannot be undermined enough in challenging times such as today when the deadly virus has reached across the globe. A comprehensive Coronavirus term insurance is designed to cover the risks in the future and offer financial protection to your loved ones in your absence.

The nominee or dependants enlisted by you at the time of buying a term insurance with COVID-19 cover gets the sum assured in the event of your unfortunate demise if it is caused by a health-related issue such as a COVID-19 disease.

If you already have a term insurance policy that covers the risks of COVID-19 disease under an additional rider, your family can easily file a claim upon one's death, and benefit from the sum assured received. With COVID 19 Insurance, they can carry on their life without any financial worries and continue to live their dreams.

If you still have not bought a COVID-19 Insurance till date and want to protect your family from the virus risks, you need to keep a few things in mind: 

  • · COVID-19 Insurance policy premiums are determined by carefully assessing your current health condition as well as analysing your past medical history
  • · If you are not infected with Coronavirus at the time of buying term insurance with COVID-19 financial protection, you stand at a chance to receive the policy benefit upon contracting the disease later
  • · You can also buy term insurance plans that offer COVID-19 as an additional rider
     

It is advisable to read the policy documents diligently to understand the inclusions and exclusions from the COVID-19 insurance. It is because each company has different terms and conditions related to term insurance with COVID-19 financial protection.

COVID-19 pandemic is a wake-up call for those who haven't yet insured themselves and have been procrastinating this decision. They can still protect their families financially with term insurance with COVID-19 financial protection as an enhanced protection cover by their side. In contrast, those who are uninsured might need to rely on some other means to tide through such uncertain times.

It is advisable to read the policy documents diligently to understand the inclusions and exclusions from the COVID-19 insurance. It is because each company has different terms and conditions related to term insurance with COVID-19 financial protection.

COVID-19 pandemic is a wake-up call for those who haven't yet insured themselves and have been procrastinating this decision. They can still protect their families financially with term insurance with COVID-19 financial protection as an enhanced protection cover by their side. In contrast, those who are uninsured might need to rely on some other means to tide through such uncertain times.

What Does COVID-19 financial Cover Means for Term Plan Holders?

Since COVID-19 is a novel virus, most of the insurance companies are now offering policies which cover COVID-19 . They have included this disease among those they are covering, according to IRDAI mandates. If you already have a term insurance policy, make sure to ask about and clarify about COVID-19 cover with your insurer and how it works as a term insurance with COVID-19 financial protection.

Below are some of the basic features of term insurance with COVID-19 financial protection as an enhanced protection through rider that might prove to be useful if you get diagnosed with the virus:

Death Benefit: Term insurance with COVID-19 financial protection also covers untimely death caused due to COVID-19. The nominees will get the sum assured in case of an untimely death due to COVID-19. 

Diagnosis & Hospitalisation Cover: You can opt for COVID-19 insurance if you want to be prepared and financially protected before COVID-19 strikes. 

You are advised to check the term insurance with COVID-19 financial protection documents before making any purchase decision.

Death Benefit: Term insurance with COVID-19 financial protection also covers untimely death caused due to COVID-19. The nominees will get the sum assured in case of an untimely death due to COVID-19. 

Diagnosis & Hospitalisation Cover: You can opt for COVID-19 insurance if you want to be prepared and financially protected before COVID-19 strikes.

You are advised to check the term insurance with COVID-19 financial protection documents before making any purchase decision.

What Should New Policy Buyers Know About Term Insurance with COVID-19 Financial Protection?

Choose a High Sum Insured

The term insurance plans offer a high sum assured in comparison to other life insurance plan at a low premium. While buying COVID term insurance, you must choose a significant cover to back your family.

It is because in case of the unfortunate demise of the policyholder during the term insurance with COVID-19 financial protection tenure, the nominee is entitled to receive the sum assured.

You can nominate any of your family members as the nominee at the time of buying the COVID-19 insurance.

Enquire about Death Claims Caused by COVID-19

It has become critical to buy an inclusive COVID-19 insurance as it is not appropriate to take the risks of a future financial as well as a medical crisis. Anybody can catch the virus, and you must stay prepared with the best possible safety net available in the form of COVID term insurance.

Do Not Choose a Term Plan Based on Low Premium Only

Buying a COVID-19 insurance plan is an affordable and extensive way to protect yourself financially against any contingency related to the virus. They usually have lower premiums, and they give you high coverage.

All you have to do is keep aside a small part of your monthly/ annual income towards a COVID-19 insurance and give a sense of security to your loved ones. It is suggested to buy COVID insurance during this challenging time without any delay.

Ensure Family Security with the Right Coverage

The COVID-19 insurance gives a sense of calmness, with financial security to your family being planned after you won’t be around. Your family will receive the sum assured to continue their lifestyle without many hurdles and hardships, while you get the diagnosis benefit as covered under the COVID rider.

The insurance amount can be helpful to your dependents to live their life happily when you are no longer with them. Make sure you choose the right cover of term plan that gives  COVID-19 financial protection.

Check for the Waiting Period

Most term insurance policies come with a waiting period before paying for certain diseases. However, in the case of Covid-19, you do not need to undergo long waiting periods.

For those buying a COVID-19 insurance policy or having an existing term plan, it is crucial to confirm about the waiting period with your insurer. 

Check Insurer's Claim Settlement Ratio

Most of the insurance companies that provide term insurance with COVID-19 financial protection have quick claim settlements.

Max Life Insurance also has a claim settlement/paid ratio of 99.65% (Source: Individual Death Claim Paid Ratio as per audited financials for FY 2023-2024), which indicates the percentage of claims settled out of total claims received.

Things to Know About COVID term insurance - Max Life Insurance

Max Life Insurance also has a claim settlement/paid ratio of 99.65% (Source: Individual Death Claim Paid Ratio as per audited financials for FY 2023-2024), which indicates the percentage of claims settled out of total claims received.

Things to Know About COVID term insurance - Max Life Insurance

Choose Longer Tenure for Long Term Security

Most of the term insurance plans have a term period starting from 10 years or more. If the insured individual faces any healthcare crisis or death during the policy tenure, then the insurer will pay the sum assured to the nominee.

What are the Limitations of COVID-19 Insurance?

Although COVID insurance provides financial protection against the virus, there are certain limitations that you must keep in mind while buying one.

  • Insurance with COVID-19 financial protection inclusions can be particular and may provide limited coverage only related to the virus
  • While buying COVID-19 insurance, keep in mind that premiums may vary from insurer to insurer. 

Frequently Asked Questions (FAQs)

Q. Are COVID-19 insurance premiums going up these times?

A. There is no such increase in premium rates of COVid019 insurance due to Covid-19. The premium is based on your health, age, risk cover selected and overall well-being. You are advised to ask your insurer about the factors that affect the premium of term insurance with COVID-19 financial protection. Check premium of our term plans online.

Q. Will my family get the entire sum assured in case of my demise due to COVID?

A. As per the terms of COVID-19 insurance you have bought, your nominees will get the death benefit after your demise due to COVID-19 disease.

ARN: Jul23/Bg/05K

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