Does your Term Insurance plan cover the Death Due to Covid-19?

Term Insurance Plan

These days Covid-19 is a serious health threat to our society. As we all are aware of the fact that every minute, we saw some new statistics related to the coronavirus. A lot of people are dying every day due to this deadly virus. Previously, the government has announced a free test for suspected patients. But now you have to pay for the COVID-19 test. So, it becomes a necessity to purchase a Term Insurance Plan to reduce unexpected financial burdens. Further think about, if you found positive? Do you have this much savings to pay your medical expenses? At this critical time, a Term Insurance Plan that covers the medical expenses of your corona treatment is just a blessing.

What is the Term Plan?

If you are already a policyholder and thinking whether your current policy is adequate to provide coverage. Life insurance policy is to provide financial support in case of sudden demise. You will get the promised sum insured in case you died due to Covid-19 or any other disease. 

However, if you are the one who has still not opted for any term insurance plan then this is the high time to purchase one for you as well as for your family. Of course, you have to go through certain medical tests to purchase a plan at this critical time. There is no doubt that your family will receive the entire death benefit in the policy if you are found not infected in the tests. 

Whereas if you are already infectious or underlying medical conditions. Then the company will decide whether they will issue you a policy or not. It is also possible that they keep your policy on hold or deny you.

Currently, we have no cure for this disease so this policy might be a little expensive for you. But overall if we think about security then there is no loss in taking an advance step for the protection of our loved ones.

Things to remember while purchasing a term Insurance plan for Covid-19:

  • Term Insurance plans provide a high sum insured for lower premiums.
  • Term insurance plans provided by different insurance companies have diverse benefits. So, make sure to check the policy documents diligently to avoid any misconceptions.
  • If you have already purchased a life insurance policy or term insurance plan then you have an additional benefit. You don’t have to wait for the policy approval in case you find Covid-19 positive in the future.
  • You can also purchase a Term insurance policy to protect your family against unexpected financial risks after you.
  • If you won’t take any term insurance plan then your family has to rely on the other means to surge through these uncertain times.

What term insurance plan is all about?

term Insurance Plans in india

Everyone wants a life that is financially stable and secure and for this people work hard. What about if you are gone? Who will take care of the financial needs of your family? For this, people buy a term insurance plan. It is mainly a life insurance product that provides financial coverage to the policyholder for a specific period even after you are gone. So, people prefer choosing the best term insurance plan that offers multiple benefits. Term insurance plans ensure complete peace of mind by ensuring that the family is financially protected and independent.

Everyone should know the importance of a term insurance plan as it comes with multiple key features. If you are buying a term plan then your nominee will get the sum assured during the demise of the policyholder. There are several insurance companies in India that offer term insurance plan with better coverage.

Benefits that one can get from term insurance

Whole Life Cover: With term insurance plans, you will get a longer coverage. Some of the plans provide cover until the age of 99 which almost means whole life cover. 

Accidental Death Benefit: The best thing is that you can also add the accidental death benefit rider to your plan. With this benefit, you will get protection against any sort of mishaps that happens in the future. The policyholder will get a choice to add a rider to their plan to increase the utility and function of the term insurance.

Affordability in premiums: If you are affordable premiums for the term life insurance then you will get high value for the cover. Premiums depend on the time at which you buy insurance. The payment of premium can be done every month, 6 months, or yearly basis as per your convenience. 

Illnesses cover: Health-related issues are just unexpected, they can happen anytime when you are not expecting it. If you are choosing the critical illness coverage then you will have to pay some additional premium to avail this feature of term insurance. In this, you will get lump-sum payouts in case of diagnosis of some critical illnesses. Apart from this, the policyholder will also have tax benefits. 

Which term insurance plan is best suited for you?

There are various insurance companies in India that provide multiple options for term insurance to individuals. Now, the confusion arises among the people about- how to choose a suitable and the best term insurance plan. When it comes to buying a plan, most of the people think which one would be best. If you also having the same doubt then here is a list of some factors following which you can find the right term insurance for yourself.

Claim settlement ratio: The first and foremost thing that needs consideration is the claim settlement ratio. This is a ratio through which you will get to know about the percentage of claims that have been paid out in the year. The higher the ratio means that it will be easy for your beneficiary to claim the insurance in your absence. Along with this, you also need to check what the total number of settled claims of the insurer is. This ratio will help you a lot in choosing the right term insurance.

Focus on the family’s requirement

The main reason for buying insurance is a family’s financial security. Therefore, it is important to estimate the lifestyle so that you can get the best term insurance cover. All that you need to do is to make an assessment of the amount that would be needed by the family. Also, you must keep in mind about inflation then buy the plan accordingly.

Cost of the premium

Buying the best term insurance plan requires some research and patient. Another factor that must be focused on is the premium cost. Everyone has a different budget according to which they choose insurance. You can narrow down the list of term insurance plans by looking at the premium cost. What would be the premium? How do you need to make payouts for the premiums? All these things must be kept in mind while choosing the term insurance plan. 

Look at the option of critical illness cover

These days, the medical costs of critical illness are skyrocketing. Therefore, you can look for the plan that comes with Critical illness cover. It will help you to cover the high cost of treatment of the illness and ensure your family is having enough money for living day-to-day life.

One important thing is that make sure you are not overlooking any of the above-mentioned factors. By following each of these, you can find suitable term insurance that affordable and provides maximum coverage. Because of multiple features and benefits, one should buy term insurance for the family’s financial security.