- High coverage at a low premium
- Financial protection for your family’s future
- Tax benefits up to Rs. 46,000`` under Section 80C and 10(10D)
- Dedicated claim assistance
- Customisable plans to suit your needs
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In summary
Most term insurance plans cover death due to COVID-19, as it is treated as a natural cause of death. If the life insured passes away during the policy term, the nominee can receive the applicable sum assured, subject to the policy terms and conditions.
Key takeaways:
- Death due to COVID-19 is generally covered under term insurance, subject to the policy terms and conditions.
- Term insurance does not cover COVID-19 hospitalisation or treatment expenses.
- Optional riders may provide additional protection, depending on the insurer and plan.
- Compare policy features and claim conditions before purchasing a term insurance plan.
COVID-19 itself is not treated as a separate exclusion under standard term insurance policies. However, every claim is assessed according to the policy wording and applicable claim requirements.
What is covered under term insurance with COVID-19 coverage?
Secure Your Family’s Future
| Coverage | Details |
| Death due to COVID-19 | The nominee may receive the applicable death cover if the life insured passes away due to COVID-19 during the policy term, subject to the policy terms and conditions. |
| Critical illness benefit rider | Some insurers offer this optional rider for covered critical illnesses listed in the rider terms. |
| Accidental death rider | Pays an additional benefit only if death results from a covered accident. It does not apply to death caused solely by COVID-19. |
| Waiver of premium rider | Available with some plans. Future premiums may be waived if the rider conditions are met. |
Read the policy document carefully to understand the coverage, exclusions, rider benefits and claim conditions before purchasing a plan.
Does term insurance cover hospitalisation expenses for COVID-19?
For medical expenses, you need a health insurance policy, as a term insurance plan does not cover hospitalisation or treatment costs. Health insurance is specifically designed to cover eligible hospitalisation and medical expenses.
| Insurance type | Coverage |
| Term insurance | Provides financial support to the nominee through the applicable death cover. |
| Health insurance | Covers eligible hospitalisation and medical expenses according to the policy terms. |
Key features and benefits of term insurance with COVID-19
The key benefits of term insurance include financial protection for your loved ones, affordable life cover, optional riders and applicable tax benefits. Death due to COVID-19 is generally covered as a natural cause of death, subject to the life insurance policy terms and conditions.
| Feature | Benefit |
| Death cover | Provides financial support to the nominee if the life insured passes away due to COVID-19 during the policy term. |
| Affordable life cover | Offers the option to choose a high sum assured at affordable premiums, depending on the plan and the life insured's profile. |
| Optional riders | Some plans offer riders such as critical illness, accidental death or waiver of premium benefits for wider protection. |
| Tax benefits | Premiums paid may qualify for a tax deduction of up to Rs. 1.5 lakh in a financial year under Section 123 of the Income Tax Act, 2025, if you choose the old tax regime. The death cover received by the nominee may also qualify for a tax exemption under Section 11, read with Schedule II of the Income Tax Act, 2025, which is available under both tax regimes. |
| Financial security | Helps your loved ones manage future financial commitments if an unforeseen event occurs during the policy term. |
Tax laws are subject to change. BFL does not provide tax or investment advisory services. Please consult your advisers.
How to choose the right term insurance for COVID-19 coverage?
Consider the following before buying a policy:
- Choose an adequate sum assured: Select a cover amount based on your income, financial responsibilities and your family's future needs.
- Compare the policy term and premium: Ensure both align with your long-term financial goals and budget.
- Review optional riders: Add riders only if they meet your protection needs and understand the benefits they provide.
- Read the policy terms carefully: Check the inclusions, exclusions, and claim conditions before purchasing the policy.
- Compare insurers: Compare insurers based on their claim settlement performance, policy features, customer support and digital claim process.
Conclusion
Term insurance provides essential financial protection during uncertain times, and most policies cover death due to COVID-19. While it does not cover hospitalisation or medical treatment, the death cover ensures that your family’s financial future is secure in the event of a tragic loss. When choosing a insurance plan, carefully review the policy terms and consider adding riders to provide enhanced protection, offering peace of mind during the ongoing pandemic.
Related articles
| Life Insurance Calculator | Joint Life Term Insurance | Whole Life Insurance |
| Life Insurance Tax Benefits | Group Term Insurance Plans | Term Insurance vs Life Insurance |
Conclusion
Term insurance provides essential financial protection during uncertain times, and most policies cover death due to COVID-19. While it does not cover hospitalisation or medical treatment, the death cover ensures that your family’s financial future is secure in the event of a tragic loss. When choosing a insurance plan, carefully review the policy terms and consider adding riders to provide enhanced protection, offering peace of mind during the ongoing pandemic.
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Frequently asked questions
Does term insurance cover COVID-19
Does term insurance cover deaths caused by COVID-19?
Yes, term insurance typically covers COVID-19-related deaths, as it is treated like any other natural cause of death. If the policyholder dies due to COVID-19 complications, the beneficiaries will receive the sum assured, provided the policy is active.
Can hospitalisation expenses for COVID-19 treatment be covered by term insurance?
No, term insurance does not cover hospitalisation or medical treatment expenses for COVID-19. It only provides a death benefit in case of the policyholder’s passing. For hospitalisation costs, a separate health insurance plan or COVID-specific policy is required.
How can term insurance support your family during a pandemic?
Term insurance provides financial security by offering a death benefit if the policyholder passes away due to COVID-19. This lump sum helps cover debts, living expenses, and future financial needs, ensuring the family’s financial stability during uncertain times.
What should you consider when selecting a term insurance plan with COVID-19 coverage?
When choosing a term insurance plan, consider factors such as the sum assured, any exclusions related to COVID-19, available riders like critical illness, the insurer’s claim settlement ratio, and affordability of premiums to ensure comprehensive coverage.
Will COVID-19-related deaths lead to claim rejections in term insurance policies?
No, COVID-19-related deaths generally do not result in claim rejections, as they are covered under natural causes. However, claims may be denied if the policyholder did not disclose relevant pre-existing health conditions during the application process.
Does critical illness insurance cover long COVID?
Long COVID is generally not covered by critical illness insurance on its own. These plans pay only for specific illnesses listed in the policy. If long COVID results in a covered critical illness that meets the policy terms, you may be eligible to make a claim. However, you must check with your insurer and read the policy terms and conditions thoroughly.
