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COVID-19 Term Insurance - List of 9 Best Term Plans for Coronavirus in 2021
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What are the best life insurance plans against COVID-19?

The COVID-19 pandemic scare is still present across the world, including India, where millions have lost their lives and livelihood as well. With coronavirus being the number one health concern for the current generation, the need to secure themselves with insurance has become the priority. As a result, many are looking for a term plan for COVID-19 to safeguard the wellbeing of their loved ones from the uncertainties of the virus. But before that, you should know the different types of life insurance policies available in the market.

Types of Life Insurance Policies

If you are the sole breadwinner for your family, then it is the right time to invest in the best life insurance plan so the financial commitments of your dependents are safeguarded in the future. 

  1. Term Insurance: This is one of the purest forms of insurance that provides complete protection against financial uncertainty to your family if any untoward incidents such as death, terminal illness, or critical illness. With high coverage and the ability to receive benefits as a lump sum, it is the most affordable insurance that one can get. 
  2. ULIP: Unit-linked insurance plans (ULIP) are a mix of insurance and investment. A part of the premium you pay is invested in market-linked funds to generate returns, while the other part goes toward providing you with life insurance cover. These policies are an excellent tool to achieve your financial goals enjoy the safety benefits.
  3. Money-Back Policy: In general, term insurance policies pay the benefit amount only on the policyholder’s death, and no maturity/ survival benefits are offered if the insured outlives the plan’s tenure. But money-back policies return the premiums paid towards insurance if the policyholder survives the policy term. 
  4. Whole Life Insurance Plan: These policies provide life insurance cover for the whole of life, unlike other plans that limit the coverage period to a fixed tenure ranging from 10 to 40 years only. 

Why COVID-19 Term Insurance? 

Among all other insurance plans, a term insurance policy is the best choice to protect COVID-19 as it offers a high sum assured or coverage on your life. This is paid as a financial benefit to the nominee against the policyholder’s death due to COVID-19. Many insurance companies are offering term plans covering COVID-19 deaths, considering it as an illness similar to critical ailments such as cancer, stroke, heart disease, etc.

List of 9 Best Term Insurance Plans for Coronavirus

Below are some of the best term plans for coronavirus that you may consider buying during these challenging times.

Plan Name Entry Age (Min/ Max) in years Policy Tenure (Min-Max) in years Sum assured (minimum) Claim Settlement Ratio (CSR)
HDFC Click2Protect Plus 25 – 65 5 – 85 ₹ 10 lakhs 99.07%
LIC Tech Term 18 -65 10 – 40 ₹ 50 lakhs 96.69%
Kotak e-Term Plan 18 – 65 5 to 40 ₹ 25 lakhs 96.38%
Aegon Life iTerm 18 -65 5 – 82 ₹ 25 lakhs 98.01%
Max Life Smart Secure Plus Plan 18 – 65 10 – 67 ₹ 20 lakhs 99.35%
Tata AIA Maha Raksha Supreme 18 – 65 10 – 40 ₹ 50 lakhs 99.06%
PNB MetLife Mera Term Plan Plus 18 – 65 10 to 65 ₹ 10 lakhs 97.18%
Aditya Birla Sun Life Insurance Life Shield Plan 18 – 65 10 to 55 ₹ 25 lakhs 97.54%
ICICI Prudential iProtect Smart Term Plan 18 – 65 5 to 40 subject to minimum premium 97.84%

What to look for while choosing a COVID-19 insurance plan?

Here are some essential factors that you will need to consider while choosing the right policy that helps you to overcome any uncertainties in life due to coronavirus.

  1. Sum Assured: An important parameter in selecting a term policy for COVID-19 protection is the coverage value. Therefore, make sure the plan offers a high coverage amount as it needs to provide enough freedom for your family to handle daily expenses while still creating a corpus for certain other important events like kid’s education, marriage, recreation, etc., in your absence. Nowadays, it is now possible to avail of a term plan with a sum assured of Rs1 crore and above.
  2. Premium: Term plans are generally low-cost, but it is always best to compare the premium of other term life insurance policies for a specific coverage value. If you opt for an extra covid19 cover or critical illness cover, or related riders, the premium will end up higher. Still, it is worth adding these covers to your policy, so it provides comprehensive protection.
  3. Riders: These are add-ons that one can attach to their existing policy for an extra premium to extend the coverage. Since COVID-19 is an illness, a critical illness rider shall help you manage the hospitalization costs if diagnosed with COVID-19. This is also the death benefit offered by the insurer for deaths due to coronavirus. The other standard riders are accident benefit riders, terminal illness riders, disability riders, etc.
  4. Payout Options: In case the policyholder dies due to COVID-19, the death benefit is paid in a lump sum or monthly installments, as per the choice exercised by the policyholder at the time of application. You wouldn’t want your family members to suffer financially in your absence, and choosing an appropriate payout method will help them tide over any crisis and still lead a decent lifestyle.
  5. Claim Settlement Ratio: In the event of the policyholder’s death, the death benefit is paid to the nominee on filing the claim request. The claim settlement ratio (CSR) is calculated based on the percentage of claims settled by an insurance provider from the total claims received in a year. A company is considered reliable and trustworthy if it possesses a high CSR number, meaning the claims are settled on time. Conversely, if the claims are getting rejected in large numbers or settlement time is high, then it fetches a low CSR. Therefore, always opt for an insurance plan with high CSR, as you wouldn’t want to keep your family waiting for the payment after your demise.

The COVID-19 pandemic has brought in many changes in people’s mindsets and the way they look at insurance. And, thus they have realized the importance of life insurance for a better future. You can visit iiflinsurance.com to opt for the right term plan for COVID-19 and ensure your and your family’s secured future.

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