India is facing a severe second wave of Covid-19, with daily infections and deaths reaching alarming levels. Hospitals in many regions are overwhelmed, oxygen supplies are strained, and exhausted healthcare workers are under immense pressure. Families of patients are struggling to secure timely medical support and are often confronted with high treatment costs at private facilities.
As serious Covid-19 cases rise, many households have been hit hard financially. This has raised concerns about whether existing health and life insurance plans will cover Covid-19 treatment and related expenses in the event of hospitalisation. Preparing for unexpected medical and financial emergencies is essential during the pandemic.
Beyond the immediate health risks, the pandemic has highlighted how important financial protection is. Having sufficient health and life insurance is a core personal finance principle underscored by Covid-19. Every family should evaluate both health and life coverage to protect against current risks as well as future health events.
Why be cautious when buying life or health insurance during the pandemic?
Choosing the right insurance now requires attention to several factors. For people who have recovered from Covid-19, obtaining new life or health policies can be more difficult, with some insurers imposing a waiting period or medical exclusions. Many insurers may apply a one- to three-month waiting period or other underwriting conditions for Covid survivors.
Below are key considerations when buying life insurance during the pandemic:
- Ensure the term life plan provides sufficient financial protection so your family can meet obligations and maintain a stable income if the primary earner is unable to work.
- Pay premiums on time to avoid a lapse in coverage. Setting up ECS or standing instructions helps preserve continuous benefits and avoids disruption in the policy.
- Name a clear nominee who will receive the policy benefits if required. Inform the nominee and family members about the policy details so they can act promptly in an emergency.
Important points to consider when purchasing health insurance during the pandemic:
- Choose a plan that offers adequate sum insured. Covid-19 treatment and associated medical care can be expensive, so select coverage based on your family size, medical needs, and financial responsibilities.
- Treat health insurance as a long-term investment in financial security, not just a short-term expense. A comprehensive plan that includes pandemic-related coverage provides important peace of mind.
- Check whether the insurer has a network of cashless hospitals. A strong hospital network allows cashless claims during emergencies, reducing out-of-pocket burdens at the time of hospitalisation.
Policies designed for Covid-19
The Insurance Regulatory and Development Authority of India (IRDAI) introduced two Covid-specific products: the Corona Kavach Policy (for individuals and families) and the Corona Rakshak Policy (for individuals).
- Corona Kavach Policy
The Corona Kavach Policy is an indemnity-based standard health plan for Covid-19 treatment. It covers direct medical costs related to Covid-19, including hospitalisation expenses for treatment up to a defined number of days. The policy is typically available for persons aged 18 to 65, and dependent children can be covered from birth up to age 25. Insurers may offer coverage for individuals above 65 based on product and underwriting rules.
Core covers under this policy generally include hospitalisation, home care treatment where applicable, AYUSH treatment expenses, pre-hospitalisation costs, and post-hospitalisation expenses as defined by the policy terms.
- Corona Rakshak Policy
The Corona Rakshak Policy provides a lump-sum benefit on hospitalisation due to Covid-19, typically triggered after a minimum hospital stay (for example, 72 hours). The policy may also cover expenses for essential consumables or equipment such as oxygen cylinders, PPE kits, oximeters, and other listed items as per the product terms.
This plan is available to individuals aged 18 to 65 and offers insured sums usually ranging from Rs 50,000 to Rs 2.5 lakh. People with comorbidities may obtain cover by paying a higher premium. Unlike an indemnity policy, Corona Rakshak pays the insured lump sum on meeting the policy conditions for hospitalisation.
Stay financially prepared
Maintaining financial optimism during a pandemic is challenging, but having the right insurance can provide tangible protection. Alongside safeguarding finances, supporting mental and physical wellbeing is important during these stressful times.
After identifying the coverage features you need, compare available health and life plans and choose the one that best fits your requirements. Ensure premiums are manageable and that you understand policy exclusions, waiting periods, and claim procedures. Taking timely action to secure appropriate insurance coverage can reduce financial strain and provide greater confidence when facing health emergencies.