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Can I Purchase A Term Plan For COVID-19 Patients?

Published On Oct 16, 2021

COVID-19 has put every individual in a whirlpool of uncertainty which has led to financial anxiety resulting in purchase of term insurance policies. Coronavirus has claimed a significant amount of lives, where insurance providers have had to pay immediate payouts for the demise of the life assured due to coronavirus. Such circumstances have put insurance providers in a tough spot. Under such circumstances term insurance has become really popular as these plans provide a death benefit in case of an unforeseen demise of the life assured. Before purchasing a term insurance plan for a COVID-19 patient you must know how a term insurance plan will work for a virus infected person.

Does Term Insurance Cover COVID-19 Patients?

Mostly term insurance policies now cover death due to COVID-19. You cannot purchase a term insurance policy for a COVID-19 patient. If a person has purchased a term insurance plan in good health conditions, one can opt for quick claim settlements in case of an untimely demise of the life assured during the policy tenure because of COVID-19. Insurance providers the buyer to be in good health condition and less prone to life-challenging illnesses for at least 6 months before the date of purchase.

At the time of policy issuance the buyer has to submit all the medical records to the insurance company to prove that they have been in a healthy condition for at least for 6 months before the date of purchase.

Purchasing a term insurance plan for a COVID-19 patient means purchasing a term insurance for a person with an existing medical condition which is not covered under a term insurance policy. Usually, under a term insurance plan the buyer is required to be free of any preexisting life-challenging medical conditions. When the number of deaths due to COVID-19 were rising rapidly in India, people started purchasing term insurance policies to ensure financial security of the family in case of unforeseen demise of the primary breadwinner due to COVID-19. This has caused a hike in term insurance sales in India. Insurance providers have the authority to reject the policy application of those suffering from COVID-19 at the time of purchase because the buyer is fighting a fatal illness already.

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

Below mentioned are two ways that can help you ensure financial security of your family in the COVID-19 pandemic:

  • Purchase a Term Insurance Policy in Good Health: It is always advised to purchase a term insurance policy when you have good health condition it not only offers attractive premium rates but also lets you enjoy extensive coverage. Usually under a term insurance policy the buyer is required to be free of any pre-existing life-challenging medical condition which can be COVID-19 for at atleast 6 months before the date of purchase. 
  • Purchase a Term Insurance Policy Post-recovery: You can purchase a term insurance once you have fully recovered from the infection. COVID-19 raises many other health issues for a patient such as muscle/joint pain, chronic dizziness, breathlessness, dizziness etc. This disease affects functioning of  major organs of a person such as heart, lungs and brain. In such a condition a term insurance policy can be very beneficial. However, for a patient who has recovered from COVID-19 different insurance providers have set different cool-off periods. If the applicant has good health condition during the set cool-off period after testing negative for COVID-19, the insurance providers can issue the applicant a term insurance policy. 

Also read: 

Does It Make Sense for You to Buy a Joint Term Life Cover with Your Spouse?

Monthly vs Lump-sum Pay-out in Term Insurance

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

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