COVID-19 or coronavirus is an infectious disease, which has turned out to be a pandemic as declared by the World Health Organization (WHO). This deadly virus has constantly spread across the world and affecting more people every day.
Millions of people have been infected by the novel coronavirus while a lot of them have unfortunately succumbed to the deadly virus. Within the Emirates alone, thousands of people have been impacted by it and many have failed to survive it.
In these cases, where the uncertainties are rising continuously, it has become very necessary to buy a life insurance policy. An appropriate life cover does not just secure your family from unfortunate events & financial disorders because of various incidents such as accidents and critical illnesses, but offer financial safety net also in case of the sudden demise of the insured person. However, some of the most common questions are-
Does life insurance cover the demise of the insured individual? Should you purchase a life cover at the time of this coronavirus pandemic?
For knowing the answers to the above-mentioned questions, keep reading this article.
Existing policyholders of the life insurance policy
If a person has a life cover and he or she dies because of COVID-19, then the dependents or nominees will get the death benefits in the form of the sum assured.
The nominees should be aware that the demise of the insured individual caused due to any health condition is generally covered under life insurance. This means that the nominees can claim for receiving the death benefit in case the policyholder passes away because of this deadly virus during the term of the plan.
Many individuals are in the doubt of whether or not their life plans cover demise because of the novel coronavirus. Hence, the answer to this is YES. Life insurance is like a boon for these people who wish to secure their near and dear ones financially.
However, one doubt has been disturbing people. Will a fresh life insurance policy include the demise because of the COVID-19 pandemic or is it only for the existing policyholders?
If someone buys life insurance now, will the policy cover coronavirus?
In case you wish to buy a life cover during the pandemic, then you must remember that the premium of the life insurance plan is evaluated by the insurer depending on their medical and health history. Moreover, purchasing life insurance during this health crisis throughout the world could have some considerable effect on the cost of the premium and the acceptance of the policy.
You must also remember that there are chances that life insurance plans may hold or reject the policy if the individual’s application is going through the process and if he or she has already been infected by the virus.
But, in case you are transparent to the insurance provider about your medical history and the current health condition while buying the insurance plan, and you are in no way impacted by the coronavirus, then there is a certain chance of your policy getting approved. This allows the nominee to get the death benefits in terms of the sum assured amount in the future if something were to happen to you because of the pandemic.
Nevertheless, as a policy buyer, you must properly go through every aspect and condition of the policy so that you aware of the various inclusions as well as exclusions before purchasing it. The reason behind this is that the insurance companies in the Emirates do not proceed with a claim request for critical illness if the insured did not go along with the medical advice given to him.
What are the conditions that should be fulfilled while claiming your life insurance policy?
For all the people who have a life cover, in most of the cases, they are covered and the insurance provider will probably pay out for demise because of the coronavirus. However, there are some conditions, which the insured person needs to fulfill during his or her livelihood for a hassle-free and smoother claim settlement.
- All your insurance premium should be paid by the time
The policyholders need to make payment of all the premiums of the life cover well in time to the insurance provider. In case, they have failed to make payment of any of the insurance premium, then the nominee is not enabled to get the sum assured after the death of the insured individual because of the pandemic.
- The death reason should not be suicidal
Because this worldwide health issue continues to grow and has impacted many lives all over the world, we have experiences where there are some death cases in which the individual infected with the virus has tried to kill himself or herself. Hence, the deaths because of suicide even when you are not impacted by coronavirus are not covered under the life insurance policy. The primary reason behind the demise must be because of a critical illness like heart attack, coronavirus, and more.
- The policyholders should have a nominee
It is mandatory for the policy seekers to nominate a person who could be eligible for getting the sum assured by the insurance company after the death of the insured individual. When the beneficiary is absent, the insurance provider will not be capable of paying the sum assured to the third-person. The insurance company is entitled to offering compensation money only to the nominee appointed by the policyholders at the time of purchasing a life plan.
The Bottom Line!
If any unfortunate event happens such as the coronavirus can impact you anytime as life is unpredictable and uncertain. This is the reason why we have to plan in advance and protect ourselves and our family by obtaining the correct life insurance policy. Basically, life cover is a risk management instrument, which offers financial safety to your family in case you pass away unexpectedly and prematurely.