Does Your Life/Term Insurance Plan Cover Deaths Due to Novel Corona Virus aka COVID-19?

The entire world is battling a serious public health challenge that has taken 45,000 lives all across the globe, the novel coronavirus aka COVID-19. The World Health Organization (WHO) has declared coronavirus as a pandemic that might cause more damage in the future. Well-developed nations with proficient healthcare systems are struggling and appear helpless in the midst of this crisis. Most of the countries including the UAE have declared complete lockdown to prevent the spread of the deadly virus while testing and development of the vaccine is still under progress.

UAE has witnessed an exponential rise in the number of COVID-19 positive cases which has created a state of fear amongst common people. Day to day lives of common people is at hold since the government of the UAE has ordered only essential services to be running as a preventive measure against the pandemic. According to healthcare experts, the entire world is at a very critical stage in the progression of the deadly virus at the community level. As responsible human beings, it is our responsibility to stand together in these tough times and make sure that we prevent the spread of the disease.

But amid the massive health issue, a genuine question that arises is that will a term insurance plan in the UAE cover deaths due to COVID-19? Furthermore, will it be possible for an infected patient to get a life/ term insurance plan in the UAE? To answer all your queries and make sure you have your protection backups in place, we’ll provide a detailed insight into the coverage aspect of life/term insurance plans over COVID-19.

Does Your Existing Term Insurance Plan Useful?

Life/term insurance is an absolute must to ensure a blanket of financial protection over your family in case of stokes of uncertainty that might lead to disability or demise of the policyholder. Especially during such tough times when the entire world is in the grip of a deadly disease, term insurance plans not only provide financial protection but also peace of mind.

Term insurance plans are pure risk protection that provides a death benefit to the nominees of the policy after the demise of the policyholder due to any reason. Term insurance plans cover all types of natural death including deaths due to medical conditions which include the novel coronavirus aka COVID-19 as well. People who already have a term insurance plan in place you can simply use it to file a claim in case of any casualty that takes place. In such a scenario the claim application will be genuine and the insurance provider will have to pay the death benefit based on the plan.

Buying Insurance Now? Will it Cover COVID-19

If you have not got yourself insured and are looking forward to buying a life/term insurance plan in the UAE, a legit question to be asked is that will the plan offer coverage against COVID-19?

The payable premium for insurance plans is directly dependent on the medical history and age of the applicant. Undoubtedly, the current global scenario has impacted all sectors, including the insurance sector, therefore, it is very likely that you will have to pay a higher premium if you are in the application stage of the insurance plan.

Furthermore, there is a very high probability that the insurance provider will reject your application if your plan is still in the application process and you’ve contracted COVID-19. If the applicant has provided all information correctly to the insurance provider the applicant will be entitled to receive the death benefit in case of the demise of the applicant. 

Are Add-On Riders Vital to Counter COVID-19 Financially?

Life/term insurance plans provide sum assured for deaths that have occurred naturally due to medical conditions. However, to maximize the security quotient of your insurance plan it is vital that consider auxiliary add on riders. One of the most common add-on riders is the critical illness rider that offers protection against critical illnesses. An important to be taken into consideration is that term insurance plans with critical illness cover will not be considered if proper medical advice was not taken. Moreover, since COVID-19 is classified as a critical illness the sum assured or the death benefit will be paid based on the underlying terms and conditions of the rider.

In a Nutshell

The life/Term insurance plan is a crucial component of a well-versed financial portfolio. It not only safeguards your family and loved ones against strokes of uncertainties on the trail of life but also provides peace of mind. These plans ensure that your loved ones don’t struggle for basic necessities when you are not around to look after them.

The COVID-19 outbreak is a wakeup call for all people worldwide who have not insured their lives yet. Provided the current status of the terrifying disease it might be a bit expensive but definitely not expensive the lives and safety of your loved ones.