Does life insurance cover the coronavirus (COVID-19)?Sun Mar 22 2020 / By: Rashmi
No matter where you go, it’s hard to find people not discussing or getting panicked about coronavirus or COVID-19. The virus is rapidly reaching the corners of the world. Till now, it has infected more than 200,000 people all over the world killing around 8,500 people.
From its precautions to rumours, the whole world is getting wrapped with the talks of the pandemic virus. There is news coming that people are panicking and shopping excessively for things like hand sanitizers, toilet papers and so on.
In such chaos, one more thing that ought to bother the people is - whether a life insurance policy will cover a death due to coronavirus. If you are also thinking about this question, we have the answer for you.
Below are a few points that will help you understand:
• In case of existing policyholders; if a person having a life insurance policy passes away from coronavirus, then their nominee will get the death benefit i.e., the sum assured
• According to experts, some health insurance policies have some exclusion but if a person has an existing life insurance policy; coronavirus will be covered in it.
• Since coronavirus has been declared a pandemic, the nominee or beneficiary can have the benefit under the pandemic illness category.
• Now, in case someone is planning to buy a life insurance policy at this time, coronavirus may impact their policy acceptance and premiums.
• According to financial pundits, the insurer has the power to reject your policy application if you have already contracted the coronavirus infection. They might also keep in the fact like your travel history checking if you have travelled to China in the past 30 days or have any future plans of doing so. All this can affect your policy, its premiums and benefits significantly.
The Bottom Line
A lot of things are happening in the wake of coronavirus. Make sure you don’t fall for the false one. As far as your life insurance policy is concerned, if you already have a life insurance policy then yes, it will cover coronavirus. To be sure about this fact, the best thing to do now is to read all your documents and contact the insurer to clear your doubts. The same can be done if you are planning to buy a policy to see if you will get coverage for Coronavirus.