What You Need To Know About Covid Insurance Before Taking A Loan During A Pandemic

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What You Need To Know About Covid Insurance Before Taking A Loan During A Pandemic

Almost for two years, the entire world has been grappling with probably one of the deadliest public health challenges in this century- the ongoing coronavirus. The World Health Organization (WHO) has already declared it as a pandemic, which has claimed millions of lives all over the world. While safety measures and lockdowns have been the primary steps by most countries, the cases are still on the rise and is present in the majority of parts of the world, including India. 

This pandemic reinstates the undeniable fact that both the uncertainty as well as the unpredictability of life point towards the significance of having term life insurance to financially protect your loved ones when you aren’t there anymore. Under term insurance, the nominees get the assured sum in case the policyholder dies during the policy’s tenure. When compared to other traditional life insurance policies, a term insurance plan gives you a maximum cover amount for the lowest premium.

Amidst the global fight against COVID 19 and the quest to get vaccinated at the soonest along with booster dose when eligible, a common yet crucial thought that strikes most of us is how is covid included in insurance and what all you need to know about it before taking a loan during the deadly pandemic.

Let us burst this balloon for you and clear all your doubts, irrespective of whether you already have term insurance or are planning to purchase one soon to get insured before taking a loan from the best loan apps

If you have existing insurance

If you already have an existing term life insurance plan, it’s natural to wonder whether your policy covers death from the ongoing pandemic in the form of coronavirus. But you can keep calm, as death due to pandemics like the ongoing COVID 19 is usually covered under your existing policy. 

Therefore, if you already have term insurance before applying for a loan through the best loan apps, there’s absolutely no reason to sound an alarm and go ahead with the application for the required loan. In the unfortunate demise of a policyholder due to coronavirus, the nominee(s) of the term insurance policy is entitled to get the death benefit in the form of sum assured. Just in case you are unsure regarding anything, you can contact your insurer or read the policy document’s details.

What if you haven’t purchased life insurance yet?

As far as people who are wondering whether to buy term insurance before or after submitting an application in one of the best loan apps, the straight answer is a yes. In fact, no need to give a second thought about this decision, and just go ahead with a term plan that meets your financial requirements. Having n adequate term life insurance in place would protect your family and dependents from any sort of financial trouble in case you, unfortunately, pass away.

  • Given that your health and medical history are crucial factors determining the amount of premium you ought to pay for your term insurance, it’s certainly reasonable to assume that an ongoing pandemic may have some impact on your soon to be taken policy.
  • If your term insurance’s application is in the process stage pending with the insurer, the insurer may either hold or, at worst, reject the policy application if you have already contracted the coronavirus. Keep in mind that as long as the policyholder has disclosed all the relevant details honestly at the time of purchasing of the term policy or applying for it, wherein the applicant was not infected with coronavirus, the death benefit claim would certainly be payable to the nominee(s), even if it afterwards arises due to death from coronavirus disease.
  • Although term insurance policies generally don’t explicitly reject death benefit’s payment due to deaths caused by any illness, still it’s always prudent for policyholders to carefully scrutinize the exclusions of their term insurance policy to remain aware of the various situations wherein the cover would not be paid.

Check out for COVID Specific Insurance Plans

Citing the ongoing pandemic as not just an opportunity but a necessity, a number of insurers have launched COVID-19 specific insurance plans. You can take these plans going ahead with the big responsibility of applying for a personal loan through the best loan apps.

These Covid specific plans provide financial assistance to the policyholder and family in case of catching the COVID-19 infection. Apart from death caused due to coronavirus, such plans may also exclusively cover the associated medical expenses as well, which are incurred during the COVID 19’s treatment of COVID-19 or cover death caused due to COVID-19. 

While the inclusions or exclusions of COVID 19 insurance plans varies insurer to insurer, the common and primary aim behind the introduction of such plans is to cover the medical expenses arising on getting infected with this virus, or at worse, provide cover amount to nominees in case of death due to COVID-19.

Why Opt for COVID-19 Specific Insurance Plan?

The ongoing pandemic has certainly served as a wake-up call for most people who had not purchased insurance yet. Given that a single hospitalization bill upon getting infected with coronavirus can eradicate our lifelong savings, it’s crucial to get insured against it. Even if you have some life insurance policy and/or health insurance, it might not turn out to be adequate. This makes it imperative to purchase COVID 19 specific insurance plan.

Listed here are key reasons to say yes to the COVID-19 insurance plan, especially when contemplating the thought of visiting the best loan apps to apply for a loan soon:

  • Presence of Life Cover

COVID-19 specific insurance plans include death benefits in the form of life cover for the policyholder’s family in case he/she dies due to coronavirus. The cover ensures that the family does not get financially overburdened and their future does not get totally jeopardized upon the policyholder’s unfortunate demise.

  • Includes all expenses related to the treatment of COVID-19 

The plan includes COVID 19 treatment expenses, which, when incurred, can burn a hole in your pocket, especially if hospitalized. This may prove to be a big financial burden. Whereas having a COVID-19 specific insurance plan will certainly take care of all treatment and medical expenses incurred due to COVID-19, therefore preventing your financial life from getting burdened.

  • Low entry and high maturity age
  • Another crucial reason to purchase COVID 19 insurance is that the virus has harmed all age groups, contrary to the earlier myth that it can be dangerous for only children and senior citizens. The virus has proved fatal for some, too, irrespective of their age group. This makes it imperative to Get protected against this virus, irrespective of your age. COVID 19 insurance plans have been designed in such a way that the entry age has been kept low, along with high maturity age, with insurance cover and benefits being applicable to higher age groups.

Conclusion

At a time like this, when pandemic is here and millions of people globally are being infected and even dying due to coronavirus, existing policyholders have to ensure that their insurance policy includes cover for this disease. And if you haven’t yet purchased term insurance or the COVID specific insurance plan, it’s important to do so immediately to ensure you and your family remain financially protected from any possible financial burden which can arise upon getting infected with COVID 19.

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