The main reason for this disastrous situation was letting our guard down at the first sign of gaining advantage over the enemy. Instead of using the opportunity to ramp up preparations and taking corrective action, we chose to celebrate an assumed victory.
According to psychologists, humans tend to remember the painful times of life, but forget the pain they actually felt at that time. As a result, we sometimes do not make adequate preparations in time, to better handle exigencies in the future. Investing in insurance – life, health, property etc. is an important preparation towards people ensuring a financially stable future, but is constantly put off for ‘tomorrow’. The ‘tomorrow’ unfortunately never comes, but the difficulties do. And with that comes the regret of not taking action in time.
The Covid-19 scare is making people rush towards life and health insurance policies that can be easily bought online. Given the scenario, Insurance Regulatory and Development Authority of India (IRDAI) has advised insurers to introduce standard insurance policies that are simple to understand and involve an easy application process. Also, they have introduced two short term health policies designed specifically to cover treatment and hospitalization costs in case of Covid-19.
1. Saral Jeevan Bima: This is an individual, pure risk cover term life insurance policy that provides a lump sum death benefit to the beneficiary in case the life insured dies during the policy term. Death due to Covid-19 is covered under this plan.
2. Aarogya Sanjeevani Health policy: This is a standard health policy for individuals/ family that provides treatment and hospitalization coverage from a minimum sum assured of Rs. 50,000 up to a maximum of Rs. 10,00,000. Covid-19 is one of several serious illnesses covered under this plan.
3. Corona Kavach Policy: This is a Covid-19 specific short term health policy that can be availed by individuals and family members. This policy is issued for a policy term of less than 12 months, and offers a sum assured amount from a minimum of Rs. 50,000 to a maximum of Rs. 5,00,000. The policy gets triggered when there is hospitalization for minimum 24 hours due to Covid-19. The policy covers hospitalization charges, ICU charges, home care treatment cost and other related expenses. Actuals are reimbursed subject to the sum assured ceiling. This is a good choice for people who do not have an existing health plan. The plan can be bought urgently and there is no waiting period for the insurance to kick in.
4. Corona Rakshak Policy: This too is a Corona-specific short-term health policy, however it can only be availed by individuals. The policy offers sum assured ranging from a minimum of Rs.50,000 to a maximum of Rs.2,50,000. It gets triggered when the life insured has been hospitalized for a minimum of 72 hours continuously. Applicants who have existing co-morbidities can get insured under this plan by paying an additional premium. The benefit of this plan is that the insured individual gets the entire benefit amount as a lump sum. This plan is ideal for people who already have a health insurance plan and want an additional buffer during the Coronavirus crisis.
5. In addition to the above, several Life Insurers have also introduced their own Corona-specific insurance plans and/or riders which are designed with more features and better benefits. Some such plans offer dual benefit of life cover that pays a lump sum death benefit to the beneficiary in case of death of life insured due to Covid-19; and medical cover that pays for treatment and hospitalization costs in case of being infected by the virus.
6. IRDAI has advised insurers to accept all claims with respect to Coronavirus under existing life insurance and health insurance policies. The claims process in case of death or hospitalization due to Coronavirus is the same as defined in your particular policy.
The above are options to help one tide over the Covid-19 crisis. However, every earning individual with dependents should necessarily invest in life insurance and health insurance from a long-term perspective, keeping one’s life’s goals and the family’s needs and wants in mind.
