Do all Term Insurance Plans Cover COVID-19?

Written by : Knowledge Centre Team

2021-05-28

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The pandemic was scary in its first wave, but it has taken a deadlier turn in India in its second wave. The second wave of coronavirus has a high death toll in India, which is breaking new records daily. Reports suggest that the Indian population is asymptomatic, which has given rise to mass hysteria. With such high numbers, the panic amongst Indians to protect their loved ones is almost tangible.

How can a Term Insurance help Protect from Coronavirus?

A lot of insurers have started providing coverage for COVID-19 with their term plans. Despite the lockdowns and other government policies, the community transmission of Covid-19 didn’t stop. So, how are Indians dealing with the crippling fear of losing their loved ones? The easiest answer is a life insurance plan which can provide coverage for Covid-19 patients.

The biggest challenge of in India is the ability of the virus to mutate and resist vaccines. Hence, buying a term insurance plan that covers COVID-19 may protect you from the financial expenses if you are diagnosed with the virus. The Covid-19 pandemic has forced everyone to adapt, and term insurance plans have become popular.

Since the death toll is higher in the second wave, most Indians are opting for life insurance plans that can cover Covid-19. Given the sharp rise in numbers of the second wave of coronavirus, policyholders are concerned about the coverage of term plans.

The most serious question for policyholders is this - do all the term plans cover Covid-19? Let’s understand how term plans can protect against Covid-19.

Consider this: Rahul, a thirty-five-year-old corporate employee, believed in smart financial planning. He had invested heavily to secure his future and protect his family. The 2020 pandemic came as a shock to him, as he was affected.

On recovering, he decides to buy a term insurance plan that can protect his family against the second wave. Unfortunately, he finds himself rejected by insurance companies owing to his medical history. Any health insurance plan post-2020 is designed to protect your family’s financial interests from the coronavirus pandemic. While these term insurance plans still cover other diseases and health failures, the biggest challenge is the coronavirus. Then how does a term insurance plan protect your loved ones in the wake of the covid-19 pandemic?

For Covid-19 financial protection with term insurance, you can either buy a new plan or upgrade your old one.

Financial Protection with Existing Term Plans

People who already have a term insurance plan are better protected in the pandemic. An existing term insurance plan can also extend to the coronavirus pandemic. In case of death due to Covid-19, the existing term insurance plan can protect your loved ones against financial emergencies in the future. You can file a similar claim in case of death due to coronavirus.

Buying a new term insurance policy now is not as profitable. Existing policyholders already have a backup, whereas a person looking for new insurance policies may get rejected during the pandemic.

The coronavirus pandemic has proved fatal for many, which is why a term insurance policy is a good financial instrument. A covid-19 life insurance policy is more of a necessity in the pandemic. The term insurance policy is an assurance that your family will have a cushion to fall back on in case of emergencies. Contact your life insurer and ask if you can upgrade your existing plan to get coverage from COVID-19. If they are not extending for upgradation, you may consider buying another plan.

Buying a New Term Insurance Policy during COVID-19 Second Wave

It is never too late to cushion your financial interests with a term insurance plan. The policyholder can enquire about the covid-19 term insurance plans. However, if you plan to buy a new term insurance policy, bear in mind that it depends on your health condition and medical history. So, the insurance company will want a detailed medical history to deem you eligible for a term insurance plan.

You can get a coronavirus term insurance policy online by calculating the premium. It is important to note that a low premium does not mean effective coverage against a coronavirus fatality. You need to keep in mind your budget as well as assess your needs for a new insurance policy. During these unprecedented times, it is smart to have a backup, as the economic situation is grim.

If you have been infected with coronavirus, the insurance company has the right to reject your suit for a covid-19 term insurance plan. The insurance company can also deny you a term insurance policy in case of underlying conditions. Hence, you should be clear on your application about the infection.

Learn why you should inform your life insurer about contracting COVID-19.

This is because the covid-19 virus is particularly dangerous for those with underlying conditions. Therefore, people with existing term insurance plans have a better chance at financial protection against the coronavirus.

A third wave has already been predicted by experts, and in the case of mutation, even the vaccine might prove a feeble defence. Therefore, getting a coronavirus term insurance policy is your best option. The pandemic has proved that a term insurance policy is an indispensable part of smart financial planning. While buyers might opt for policies at their discretion, a covid-19 term insurance policy is recommended.

Keeping the current situation in mind, the Canara HSBC Life Insurance has feasible term insurance options. Clients can opt for the iSelect Smart360 Term Plan, which offers financial protection in the wake of a death. Also, the term plan offers payout in case you are diagnosed with any life threatening disease. Calculate the premium before buying a term plan to assess your affordability against the amount that you have to pay as per the premium frequency chosen by you. The process of buying a term plan is easier online as you don’t have to step out risking your lives during the pandemic.

This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.