The Right Cover for the Wrong Time

  • Updated on: 5 Mar 2024
  • Published on: 17 May 2021
The Right Cover for the Wrong Time

India is experiencing a second phase of Covid-19, with over 300,000 Coronavirus outbreaks and over 3,000 deaths every day. Patients’ families are begging for support as the area suffers from a severe lack of oxygen. Exhausted medical staff are on the verge of collapsing.

As the number of serious Covid-19 cases in India continues to rise, innumerable families have been financially impacted by the high treatment costs at most private healthcare facilities. Many citizens are concerned about whether their current health insurance plans would cover the costs of Covid-19 care in the event of hospitalisation.

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It is critical to be braced for any adverse circumstances ahead of time. Not only is the pandemic a health emergency, but it is also an economically challenging time. The significance of getting insurance, and having enough of it, is one of the most important personal finance principles that all of us have realised from the coronavirus pandemic. Every family requires health and life insurance, not just during a pandemic, but also for any health conditions that might arise in the future. 

Why do we need to be extra careful while buying life or health insurance during the pandemic?

Photo by Mufid Majnun on Unsplash

There are many things that need to focus on to find the most appropriate insurance, whether it be health insurance and life insurance for you and your family. For those who have recovered from the Coronavirus, it has become increasingly difficult to purchase life or health insurance plans on the spot. Since many insurance providers demand a one to three month cooling off or waiting period if a Covid survivor applies for a health or life insurance policy.

Let’s discover what one should look for while buying life insurance during pandemic.

  • Firstly, the term plan must empower the family to handle obligations and get an income source that stays stable even when the earners in the family won’t be able to work.
  • Secondly, make sure you pay your premiums on time to ensure continuous coverage. To maintain the continuation of benefits which are provided, make sure the policy is active by ensuring timely payments simply through setting up ECS/standing instructions.
  • Thirdly, ascertain that the plan has a nominee who will receive the benefits if the policyholder is unable to do so. You must also tell the candidate and other members of your family about your insurance coverage. Your candidate should be mindful of the financial plan at all times so that they can take necessary action in the event of an emergency.

Now, let’s know what to keep in mind when buying health insurance during pandemic:

  • The most important thing to consider when choosing a plan is having insurance that offers ample coverage. Treatment and medications for Covid-19 can indeed be costly, so you should carefully consider your healthcare coverage amount depending on your family members, financial situation, and responsibilities when coming to a decision.
  • A health plan should sound like an ideal investment for the current situation as well as the future rather than a liability. Most of the countries over the globe have succumbed to the pandemic, and now getting a comprehensive health care package that includes financial assistance is really necessary.
  • Many insurance providers have partnerships with a network of hospitals (also known as Network Hospitals), and getting a contract with one of these insurers will help you get cashless coverage in the event of a medical emergency. As a result, before shortlisting insurance policies, this becomes a critical criterion.

Different Policies Against Covid-19

The Insurance Regulatory and Development Authority of India (IRDAI) has launched two policies in response to the Coronavirus pandemic: Corona Kavach Policy (for individuals and families) and Corona Rakshak Policy (individuals).

  • Corona Kavach Policy

IRDAI has assigned that public and health insurers sell the “Corona Kavach,” an indemnity-based individual Covid-19 Standard Health Policy. Citizens will be refunded for their direct Covid-19 care costs under the terms of the agreement. This scheme would cover the holder’s hospitalisation costs for up to 14 days.

The policy is available to people between the ages of 18 and 65. Dependent children shall be protected from the first day of their life before they reach the age of 25. According to the product design and underwriting policies of the insurance, insurers can cover people over the age of 65.

Hospitalisation costs, home care treatment, medical expenses for Ayush treatment, pre-hospitalisation medical expenses, and post-hospitalisation bills are covered as part of the core cover.

  • Corona Rakshak Policy

This is a Covid health care programme that includes medical expenses if the policyholder has been in hospital for at least 72 hours. Other expenses for buying required equipment, such as masks, oxygen cylinders, PPE kits, oxygen nebulizers, oximeters, and safeguards for a person, are covered by the Corona Rakshak Policy.

Citizens between the ages of 18 and 65 may purchase this policy on an individual amount insured basis. The sum varies between Rs 50,000 and Rs 2.5 lakh. Individuals with comorbid conditions will be insured if they pay a higher premium.

Unlike the Kavach Insurance, the Corona Rakshak Policy covers only one person and pays out 100% of the amount insured in the event of hospitalisation.

Stay Financially Hopeful

During pandemic, it is quite difficult to stay financially hopeful and hence it is important to get insured. Plus, staying positive during these times is really important for mental health and physical health. After understanding key factors to find the right cover for your needs, start comparing the best cover online and buy it or start paying your premium via SalaryCard by EarlySalary which won’t let you compromise with your health with a 4X limit along with the choice to repay in till 12 EMIs.

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