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Can I Buy Term Insurance for a COVID-19 Patient?

dateKnowledge Centre Team dateMay 24, 2021 views97 Views
Term Insurance for COVID-19 Patient | Buy the Best Term Plan Online

COVID-19 pandemic has put everyone in a whirlpool of uncertainty. The resulting financial anxiety led to frantic panic-buying of life insurance policies. The virus claimed lives of several policyholders; insurers had to issue immediate pay-outs. Such conditions put insurance companies in a tough spot. Therefore, in 2021, companies have set some systematic rules and regulations that determine the buyer's eligibility. But before you decide to buy a term life insurance for a COVID-19 patient, you should understand how a term insurance cover will work for the virus-affected individuals.

Does Term Insurance Cover Covid-19 Patients?

You cannot get term insurance for a covid-19 patient. You can opt for quick settlements if policies were purchased in good health conditions. Companies require the buyer to be fit and free of life-challenging illnesses for a period of 6 months before the date of purchase.

That means the buyers have to submit all the medical records to the company. Thus, they should prove that they have been in a healthy condition in the last 6 months. The health period varies depending on the company rules and the type of policy. It may go from 3 months to 4 years.

Usually, term insurance plans require the buyer to be free of any existing life-challenging medical conditions. In 2020, when the numbers were rising rapidly, people started purchasing term insurance policies for financial security against COVID-19. This caused a sudden 40% hike in term insurance sales in India. Companies then settled the claims under the provision of general death.

Companies have the authority to reject policy requests of those suffering from COVID-19 at the time of the purchase. As the buyer is battling a fatal illness, he/she is ineligible to be insured by the term insurance.

How to Ensure Financial Security in the COVID-19 Pandemic?

Many companies have launched health insurance policies that cover the treatment expenses of the COVID infection. For the same you can try two things:

Purchase a term insurance plan in good health condition

If you are worried about getting infected and had no major illness in the past 6 months, you can apply for term insurance. Further, if there is a COVID-19 diagnosis, the policyholder should start reporting the treatment to the insurer.

The policyholder must have all the medical reports, prescriptions, and admission papers. If COVID-19 is responsible for the policy holder's demise, the company will settle the death claims, provided that the policy hasn't matured and all premiums are paid.

Purchase a term insurance post-recovery

COVID-19 raises several other health risks for the patient. Some of the recovered patients suffer from problems such as - muscle and joint pain, chronic dizziness, chest pain, and breathlessness. The infection also hampers the functioning of major organs such as the lungs, heart, and brain. In such a condition, getting term life insurance can be beneficial.

However, for recovered patients, different companies have set different cool-off periods. Generally, these periods range from 60 – 90 days. If the applicant shows decent health for 90 days after testing negative for COVID-19, the companies can issue the term insurance.

Term Insurance for COVID-19 Patient | Buy the Best Term Plan Online

Do not purchase term insurance in haste and stress. Understand your reasons for applying to the plan. Do not hop on the bandwagon and make a panic decision. Understand your financial standing, requirements, and future liabilities. Plan a future expense map and then purchase a policy that will fulfil your family's needs.

Canara HSBC Oriental Bank of Commerce Life Insurance has designed the iSelect Star Term Plan. It is the best term insurance to help people plan their future and be their support system if diagnosed with any terminal illness.

Can iSelect Star Term Plan help you in Medical Contingencies?

The policy remains active for a specified period. If the insured passes away while before the term maturity, the nominee(s) gets the death benefit.

At the time of purchase, the buyer can select the policy term. You can also choose the premium payment intervals – annually, quarterly or monthly, or limited. The insurer decides the payable premium amount. It depends on the insurance value, age, health, and medical history of the buyer.

Here are some of the features of iSelect Star Term Plan that can help you to secure your financial health:

  • Increase life cover at age milestones to cater to rising financial needs.
  • Avail tax benefits on the premium.
  • Discounted premiums for term insurance for women and pre-existing customers.
  • Option to augment cover through additional inbuilt coverages like Accidental Death Benefit, Child Support Benefit, Accidental Total and Permanent Disability Benefit
  • Sum Assured will be paid on occurrence of death or on diagnosis of Terminal Illness, whichever happens earlier.
  • Multiple options to receive benefits as lump-sum, monthly income or part lump-sum part monthly income with the option to choose both level / increasing income.

Canara HSBC Oriental Bank of Commerce Life Insurance will look after your financial security needs. The insurers will assist you in assessing your needs and getting a hassle-free optimum policy purchase. Remember that companies consider some terms and conditions strictly while issuing a policy. There are a few general rules that influence the claims and eligibility criteria.

1. Every buyer must disclose the family medical history and a medical record.

2. Every buyer must provide complete information about lifestyle and habits related to intoxicants and smoking.

3. Every buyer must provide genuine information about interests such as life-threatening sports and other perilous activities.

If the company learns that the buyer in question has a medical history of illnesses or has a smoking habit, they put the customer in high-risk groups. Therefore, for lower mortality and health risks, the customers are generally required to pay higher premiums.

Learn these 14 reasons you might be paying a higher premium.

Every buyer should note that, before allowing pay-outs, companies conduct a thorough investigation to check the cause of death. Withholding information and learning that the cause of death falls beyond the policy limits, the company has the absolute right to deny the claims.

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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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