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Is Death Due to Coronavirus Covered Under a Term Plan?

09 June 2022, 11:45 AM

The popular saying is staring us on our face like never before. Coronavirus, also known as COVID 19, has caught us off guard. The World Health Organisation (WHO) has declared COVID 19 a pandemic. There are 10,746,183 confirmed cases detected so far in India alone. According to WHO’s latest reports, the death toll has reached up to 154,274 in the country. The pandemic has time and again made us realise how we should prioritise our health over everything else. What is better than laying the groundwork in order to face any unforeseen situation? A term insurance policy should take care of the family of the deceased as far as the finances are concerned.

What is Coronavirus?

Coronavirus, widely known as COVID 19, is primarily a respiratory disease caused by a strain of newly found coronavirus. Most people infected with this display mild to moderate symptoms such as fever and cough. However, individuals with co-morbidities and senior citizens might show serious symptoms of breathlessness and chest pain.

Is Death Due to COVID 19 Covered Under a Term Plan?

Now, if you are wondering whether or not a death due to coronavirus is covered under a term plan, here’s what you should know:

  • Is the Individual an Existing Life Insurance Policyholder?

According to the life insurance companies, death due to COVID 19 is considered as general death. If the deceased person, who died due to coronavirus, had the term insurance in his name before the outbreak of the pandemic, the nominee or the beneficiary nominee of the individual is entitled to receive the sum assured as a death benefit. However, a valid life insurance claim is required to be filed by the nominee in order to claim a death benefit. Such benefits will be settled after a thorough investigation of necessary medical documents and doctor certification.

Has the Individual Got a Term Insurance Policy Post the Eruption of the Pandemic?

If buying an insurance policy tops your to-do list now, bear in mind that the insurance company fixes the premium of the policy. You pay the premium as determined by the insurance company based on your medical history and your health. In fact, if an individual is still in the process of buying term insurance, it is the prerogative of the insurance company to pass or to reject the policy if he/ she has already contracted the disease. If the individual has put forward all the details correctly while buying a term insurance policy, ergo he/ she is not currently infected by a coronavirus, his/ her nominee will get the death benefit even if the individual dies due to coronavirus at a later point in time. If you are still in the term insurance policy application stage, consider the fact that a global crisis like coronavirus will definitely affect your policy acceptance and premiums.

Has Your Insurer Marked COVID 19 Under Critical Illness?

The nominee or the beneficiary nominee usually receives the agreed sum of money if the death of the policyholder is caused as a result of any illness. However, life insurance policy add-ons are an anomaly, wherein benefits are paid only when certain conditions laid out by the insurance companies are fulfilled. If you do not adhere to the terms and conditions of Life insurance policies with critical illness benefits, any claim thereafter may not be entertained. In case the insurance company marks coronavirus under critical illness in a policy’s rider, death benefits are solely dependent on the rider’s terms and conditions. 

How to Go About It?

Different life insurance organisations follow a different series of steps. However, all the procedures are more or less the same. Here is how one of the leading organisations work. Read on to get a basic idea:

  • The nominee or the beneficiary of the nominee can download the claim initiation form from the company’s website
  • If the policyholder has passed away in the hospital, the nominee or the beneficiary of the nominee is required to fill in the medical reports
  • The nominee has to submit the KYC of the deceased (policyholder) and his own
  • The nominee has to submit the death certificate in original. In case the death certificate is not available, the nominee should submit a report issued by the police declaring the death of the policyholder
  • The nominee has to submit the bank account details
  • The insurance company will then verify the claim and initiate the same


At a time when the world is hit by supposedly the worst crisis, the insurance companies have stepped forward and provided us with some relief. Even though different insurance companies have different coverage and claim process, it is nevertheless comforting to know that they got our back.

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