Will Your Life Insurance Cover Death Due To Coronavirus?

The novel coronavirus or Covid-19 has already claimed more than one lakh lives in India. This pandemic has really put things in perspective and has made people realise the importance of having a life insurance policy.Butthe question remains, will a life insurance policy cover death due to Covid-19. That is, can a nominee successfully claim a payout if the policy holder passed away due to the coronavirus?Let us find the answer to this very relevant question.

The short answer to this question is, yes. Beneficiaries must be aware that a life insurance policy covers death due to health related issues, and a Covid-19 death qualifies as a health related death. Therefore, if a policyholder dies due to the coronavirus, the beneficiary can file a claim and the insurer will pay the assured sum, unless it is specifically stated in your policy that it is not covered.With the novel coronavirus making people question their life insurance policies, now would be a good time to revisit the terms and conditions as well as the exclusions in your life insurance policy and clear any doubts with your insurer.

A life insurance policy is a contingency plan designed to counter the unpredictability of life. So, any time is a good time to buy life insurance and create a cushion for your family to fall on if something were to happen to you. Having said that, the current crisis may have some impact on policy acceptance and premiums. Premiums are naturally dependent on your current health and medical history, too.

Most life insurance companies won’t deny the death benefit if the death of the policyholder was due to coronavirus. However, one must carefully consider the conditions set by the insurer in their critical illness rider or add-on. If those conditions are not met, the insurer may deny payment. For example, in some critical illness riders, a condition is set that explicitly states, that the benefit would be denied if medical advice was not adhered to by the policyholder.

Thus, it’s quite clear that most life insurance policies will cover death due to any illness, including a Covid-19 infection. But rather than assuming that your life insurance will provide the death benefit, it is always advisable to re-examine your policy document and look for any clauses that state otherwise. When in doubt, call up your insurance provider and enquire about your policy. In the meantime, protect yourself from the virus by using a mask and washing your hands frequently.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.