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Covid-19 Term Insurance - Features, Benefits and Details

Updated On Aug 05, 2021

Around the world, people had to adjust to a new reality of social distancing, wearing masks and sanitising hands under the Covid-19 outbreak. Even the economic and social system has been reconstructed. Most Indians considered insurance as an investment or a tax-saving tool before the pandemic, but the previous year has helped us realise the importance of financial security. In terms of insurance awareness and benefits, there has been a considerable transition. 

Furthermore, due to the growing concerns about the future and customers' attitudes towards life insurance plans, the insurance companies have evolved as well. They have been forced to adjust their policies as a result of these uncertainties. The following article focuses on one such innovation, i.e., the Covid-19 term insurance plans, which has been introduced by many insurers. So, let's dive into the article to know about different aspects of the Covid-19 insurance plan.

What is a Covid-19 Term Insurance Plan?

A Covid-19 term insurance plan is a standard insurance plan with additional financial protection against Covid-19-related death. Term plans typically only pay out a death benefit due to illness if the insured dies of a critical illness like cancer, stroke, or heart disease, among others. However, with the increasing number of Covid-19 cases every day, several insurance companies have started covering Covid-19-related deaths as well.

What is the Need of a Covid-19 Term Insurance Plan?

Covid-19 term insurance is a must-have since it provides financial protection against death caused by Covid-19. So, if the life assured dies due to Covid-19-related death, the beneficiary can file a claim and be entitled to the sum assured as a death benefit. Moreover, the insurance prices are kept low to ensure that everyone can safeguard their loved ones in the event of unforeseen events. Furthermore, the advantages of Covid-19 insurance plans are undeniably beneficial. Even the insurance companies have been urged by the Insurance Regulatory and Development Authority of India (IRDAI) to prioritise and expedite such claims.

What are the Features of a Covid-19 Term Insurance Plan?

A Covid-19 term insurance plan has all the features of regular term insurance policies. Besides them, some of the special features are mentioned below. 

  • Death Benefits - Financial protection from Covid-19 is included in these term insurance plans as it covers early death caused by Covid-19. In the event of an untimely death owing to Covid-19, the nominee will receive the sum assured.
  • Coverage for Diagnosis and Hospitalization - If you want to be financially prepared and protected before Covid-19 strikes, you can purchase the Covid-19 term insurance plan. The plan assists you in paying for medical expenses such as Covid-19 diagnostics, medications, treatment, and hospitalisation costs.
  • History of Health Problems - The Covid-19 plan covers the life assured with a history of health problems that can make him/her more vulnerable to getting the virus, or if he/she frequently visits high-risk areas. However, the premium rates and terms and conditions may vary from insurer to insurer.
  • Waiting Period - Most term insurance policies have a waiting period before certain ailments are covered. In the case of Covid-19, however, there are no lengthy waiting periods. You can double-check the exact waiting period with your insurance company.
  • Policy Inclusion - Covid-19 financial protection provisions in insurance can be specific, and may only give limited coverage for the virus.

What are the Benefits of a Covid-19 Term Insurance Plan?

Here is the list of the benefits offered by the Covid-19 term insurance plan.

  • Financial Security - Financial protection provided by these plans is the primary benefit. If you catch coronavirus and die as a result, your dependents will receive the entire sum assured as death benefits. This money can come in handy in allowing them to continue living their lives without disruption even after your demise. 
  • Affordable Premium Prices - Although you may not be capable of preventing unpleasant things from happening, you can provide a security net for your dear ones by purchasing a Covid-19 term insurance plan coverage at reasonable premium rates.
  • Quick Claim Settlement Process - One of the major benefits of the Covid-19 insurance plan is the speed with which claims are processed. Moreover, the cashless/online settlement option reduces the need to speak directly with the insurance representatives and helps in following social distancing protocols. 

  • Beat Inflation - Healthcare costs have risen dramatically, and this has become even more apparent during the pandemic. As a result, consumers are forced to spend their money in the event of a medical emergency, risking their long-term ambitions. Without a Covid-19 insurance policy, most people rely on their own cash to handle medical emergencies. However, with Covid-19 insurance benefits on your side, you don't have to worry about rising inflation. Your family will be able to maintain their lifestyle even after you pass away. 

Take Away

COVID-19 is without a doubt a serious pandemic from which you and your family must be protected. While social distancing and sanitization guidelines should be your first line of protection against the virus, a COVID-19 term insurance plan could be your last resort.

Also read 

Top 5 Riders To Add To A Term Insurance Plan

Reasons to Buy Term Insurance from Your First Salary

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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