If you are wondering what is term insurance, it is a life insurance plan that provides cover to a person for a specific term in consideration of premium payment. In the unfortunate event of the person’s death during the specific term, death benefit is paid to the nominee. Term insurance is a cost-effective solution as the premiums are relatively lower as compared to other life insurance plans.
Life has a way of throwing curveballs and getting term insurance is one way to stay prepared for such unexpected situations. Take the current COVID-19 pandemic, for instance. It has shown us that getting a term insurance plan, especially if you have loved ones to take care of, is very important. On the one hand are medical issues that are cropping up during the pandemic while on the other hand are financial stresses. Sudden unemployment or a pay cut may throw your family in a troubled situation. This makes it imperative for you to buy term insurance so that your loved ones are financially secured in case there is an untimely demise.
Things to take care of to ensure that your new term insurance plan covers COVID-19 claims
If you have an existing term insurance plan, your loved ones or nominees can file a claim in the unfortunate event of death even if it is due to COVID-19 and get death benefit, subject to the conditions contained in the policy. This will help them with their lives without any stresses at least on the financial front, and will aid them meet their life goals.
If you are buying a new term insurance plan which cover COVID-19, you should keep in mind that insurance firms consider factors such as your age, your health condition and your risk profile before they set a premium or give the go-ahead for the application. Owing to the pandemic, where you live (the extent of infection in your region), your health condition and age become all the more important when the firm issues the new COVID-19 term plan.
If you have already been infected by the virus, the insurer will look at your individual case details before approving your application seeking to buy term insurance.
However, if you have not been infected and if your application has been given the go-ahead, you can be assured that your COVID-19 term plan will include all benefits including cover for COVID-19 deaths.
It is important to fill your application form carefully and provide the right information. Even though you have the best intentions and get the appropriate term insurance plan, your family or nominee(s) may not be able to claim benefits if you have not provided accurate information.
It is also important to pay term insurance premiums on time. Disclosing your medical history and lifestyle is very important because your family will pay the price of this oversight later. Incorrect or incomplete information may also mean your family’s claims are rejected. For instance, if you are a smoker, you would need to disclose that information when you buy term insurance.
Also, make sure to put in your nominee information accurately. You may feel it is not important when you are getting term insurance. You cannot proceed further if you have not filled in your nominee details as it is the nominee who is entitled to the term insurance benefits.
If you are planning to buy a new term insurance policy, you should make sure to provide accurate information regarding your medical history, age and lifestyle habits. You should disclose whether you already have been infected or not and accordingly fill in your application. If your application is approved, you do get COVID-19 coverage and your family can claim death benefit in future. If you have an existing policy, it already covers COVID-19 and your family can claim benefits, depending on the insurer and the authenticity of the information you have provided.