Welcome Guest! You are here: Home » Business & Economy

Does Term Insurance Covers Coronavirus Deaths?

The death benefit is an agreed-upon amount that the insurer is liable to pay to the beneficiaries when the insured dies

Thursday May 28, 2020 3:35 PM, ummid.com News Network

Term Insurance Plan Explained

The coronavirus disease has been causing havoc across the globe, and the situation is no different in India. With the number of infected people increasing by the day, it has forced us to rethink the way we lead our lives. In times like these, the Government of India is doing everything in its power to ensure the citizens are given proper care when tested positive for the disease.

In the woke of the coronavirus pandemic, ensuring the safety of your health and finances is essential. It has re-emphasized the importance of having an adequate insurance plan that will safeguard you and your loved ones financially. But does a term insurance plan covers death due to coronavirus? Well, this article will explain just that.

For existing term insurance policyholders

If you contract the coronavirus disease and happens to die in due course of time, the insurer will pay the sum assured amount to the beneficiaries of the policy. The primary purpose of buying a term insurance plan is to provide financial security to your loved one in case of your death.

The death benefit is an agreed-upon amount that the insurer is liable to pay to the beneficiaries when the insured dies. So, as an applicant, it is your responsibility to choose the appropriate sum assured amount and enter correct beneficiary names when buying the policy.

For people buying term insurance newly

If you are the sole earning member of the family, your death can have a huge financial impact. In such a situation, having taken a term insurance plan will come in handy. So, if you are planning to buy term insurance, the obvious question that you may have is whether it covers death due to coronavirus.

• If you have already tested positive for the coronavirus disease before buying the term insurance plan, the beneficiaries of the policy will not receive the death benefits. In fact, the insurer will reject your application if they realise that you already have the coronavirus infection.
• When buying term insurance, make sure that you are providing all the information correctly to the insurer. However, if you do buy the policy during this pandemic and happen to die due to any other reasons (other than coronavirus), the insurer is liable to pay the death benefits to the beneficiaries of the policy.

In the end, it is necessary that you evaluate the coverage and exclusions of the term insurance plan before buying the policy. In case of confusion, get in touch with your insurer to resolve your queries.

What if the insurer counts the coronavirus disease as critical health conditions?

To enhance the term insurance benefits, many insurers offer critical illness cover. With this cover, you will be covered for any life-threatening disease (mentioned in the policy coverage) acquired during the policy term. The insurer will pay a percentage of the sum assured amount to the policyholder to take care of the expenses arising due to the acquired disease.

But if the insurer considers coronavirus as a critical health condition, you will have to purchase the critical illness cover to manage the disease-related expenses. However, note that the insurer will pay the death benefits to the beneficiaries of the policy whether or not you purchase the critical illness cover.

To Sum It Up!

Term insurance is one of the basic life insurance plans available in the market. The primary objective of the policy is to offer financial security to your loved ones in your absence. So, to reduce the stress of coronavirus pandemic, safeguard the financial future of your loved ones with a term insurance plan.

For all the latest News, Opinions and Views, download ummid.com App.

Select Language To Read in Urdu, Hindi, Marathi or Arabic.

Share this page

 Post Comments
Note: By posting your comments here you agree to the terms and conditions of www.ummid.com