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Do All the Term Plans Cover COVID-19?

dateKnowledge Centre Team dateMay 28, 2021 views212 Views
Term Insurance Cover COVID-19 | Buy the best term life insurance plan

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.

Term Insurance Cover COVID-19 | Buy the best term life insurance plan

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 Oriental Bank of Commerce Life Insurance has feasible term insurance options. Clients can opt for the iSelect Star 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.

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Frequently Asked Questions (FAQs) for Term Insurance

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term plan doesn't offer any payout after maturity or expiration date.

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 70 years of age.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, a term plan pays a part of the sum insured to treat your disease.

Term insurance riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term policy remains active until the expiration date.
  • Income Rider: The rider ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to Ask while Buying a Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
  9. 9. Does the term insurance plan have a cash value if you decide to cancel the policy?
  10. 10. Under what circumstances can a term insurance plan be cancelled?
  11. 11. Can I pay the premiums online or make electronic payments?
  12. 12. What will happen to the term plan if the life assured starts smoking after purchasing the policy?
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