Does Your Insurance Policy Cover you for Coronavirus (COVID-19)?

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The fear of COVID-19 closed schools, colleges, religious places, restaurant etc. There is complete lockdown in many parts of the world. 

Everyone is advised to maintain social distance and remain at home. The World Health Organisation (WHO) has declared the COVID-19 or Coronavirus as a pandemic. 

Coronavirus is not only limited to any one country but the whole world is suffering from it. Every day new cases are reporting and this number is increasing rapidly. The worst part is that right now there is no vaccination or any cure available for it.

With the increase in number of COVID-19 cases, insurance companies are getting calls from consumers. Everyone wants to know whether their insurance policy cover Coronavirus. Whether they get the compensation in case of medical expenses or matured amount in case of death of the insured person.

If you already have health insurance policy

If you already have a health insurance policy then read the documents carefully. Most of the health insurance policies cover all illness except the few. Since COVID-19 is a new disease and is not falling under any pre-existing illness; this will be covered under your health insurance policy.        

Hence all the expense relating to pre and post hospitalisation is covered under the policy. The process to claim is the same. You can both pay your medical expenses in cash and reimburse it from the insurance company latter or you can make your payment by a cashless method. In the cashless method, the insurance company pays your bill directly to the hospital, provided the hospital should be in the network of the insurer.

Are deaths because of Coronavirus covered by life Insurance policies?

Coronavirus has infected a large number of people and the number of deaths due to it is increasing rapidly. In this situation, the insured people who have life insurance policy want to know whether the beneficiary will get the insured amount in case of death of that person due to this disease. 

If you already have life or term insurance policy

If you already have life or term insurance policy then the policyholders must know that the death caused by coronavirus is covered in life insurance plans including term insurance. 

As long as the insured person has disclosed all the information correctly at the time of filing insurance application and paying the premium amount on a timely basis, the death from coronavirus is covered. 

Can I apply for the term or life insurance during coronavirus pandemic?

Coronavirus has changed the lifestyle of people. Every person is living in fear due to this virus. At this time many people are considering of buying the insurance plan to secure their family in case anything happens to them.  

If you are also thinking that it is better to take the policy then you are not alone and as a result, there is a rush in buying insurance policies. 

After the outbreak of the COVID-19, insurance companies are facing higher pay-outs. So, if you are considering purchasing the insurance plans, then you may have to pay higher premium amount. Further insurance companies are also demanding a lot of information from consumers and the approval process is also slowed down. If you haven’t yet applied for a policy you’ll face delays in approval.

If your policy application is in process, the insurer may hold or maybe reject the policy if you’ve got already contracted the coronavirus infection. Further, your insurance company may postpone your application if you have plans to travel to or recently visited any destinations with Level 3 or Level 4 travel warnings from the Centres for Disease Control and Prevention (CDC). At this time of writing, the CDC’s restricted list includes China, Italy, Iran and South Korea – which means everyone, is advised to avoid unnecessary travel to these regions.

Bottom Line

If you have insurance policies, then terms and conditions are not going to change. Further, there will no increase in your premium amounts. 

But if you want to buy new insurance policies then you have to wait for a long time as the approval process is very slow these days. Further, if you have travelled to any country especially China, Italy, Iran and South Korea then there are higher chances that your application got rejected.

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