Do Life Insurance Policies Cover Death Due To Coronavirus?

The worldwide figures of people infected with and dying from the novel coronavirus (COVID-19) are constantly on a rise. The killer virus is showing no signs of slowing down. But one would agree no more that the virus has put things in perspective and has more and more people realise the importance of having a life insurance policy. 

You must be thinking if life insurance plans cover death due to the novel coronavirus or not? That is, can a nominee successfully claim a payout if the policyholder dies due to the coronavirus infection? Let us dig in more into it.   

Yes. There is good news that you have been looking for, that in the unfortunate event of death, the life insurance company will accept your claim and the death benefit will be paid to the nominee. 

You must note the following points: 

• Existing policyholder: In case you are an existing life insurance policyholder, then your beneficiary will be eligible to get the sum assured in case of your death, if the premiums are paid up to the date of your death. This means that your policy should be active at the time of your death. Otherwise, the nominee would not be able to make any claim. 
• Pre-existing illness: If the death occurs during the waiting period for the specified pre-existing conditions, then the nominee will not be eligible to claim the sum assured.  

You may also like to read:- Does My Term Insurance Plan Cover Death Due to Covid-19?

Following are the exclusions under your life insurance policy: 

In case of suicide within one-year time frame of policy purchase, no claim can b made by the nominee

• Death due to alcohol or drugs or solvent abuse related death. 
• Participation in illegal activities
• Accidents
• Terrorism
• Act of war
• Participation in illegal activities
• Participation in high risk and adventurous sport

1. Nomination 

You must name the nominee under your life insurance policy. If there are more than one nominees, then the percentage to be paid to every nominee should be mentioned. 

2. New policyholders

If you are a new life insurance policy buyer, then you will be at a higher risk for the insurance company, keeping in consideration the coronavirus situation. It would lead to a slight increase in the premium that you will be required to pay towards your life insurance policy. Note that your premium will be decided on the basis of current health as well as medical history.

In case the insurer finds that you have a travel history of visiting countries with high infection levels, then it may reject your application. But if you have provided the right details to the insurer, then there are high chances that your application will be accepted. 

3. Overseas Travel

You will be covered for death due to coronavirus infection under the existing life insurance policy even if you have returned from a country that has high cases of coronavirus (COVID-19). 

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Conclusion

Clearly, most life insurance policies will cover you for death not only due to coronavirus, but due to other illnesses as well. Still, instead of simply assuming that your life insurance policy does cover you for the same, you must re-examine the policy document and make sure that no clause states otherwise.  

In case you are still in doubt, then you can get in touch with the customer care executives at InsuranceDekho and get your queries solved at the earliest. Also, whether you have a life insurance policy or not, it is recommended to keep yourself protected from the virus by wearing a mask and washing your hands frequently. 

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.