Because of the COVID-19, people are scared of death and even the world health organization has declared it as a pandemic. Since it has almost affected 2 lakh people worldwide and has killed around 8,500 people worldwide, it is indeed a pandemic.
Even in India, 151 people have got affected in which 20 has got the cure and 4 people died. In this situation, people are selling their life insurance policy in order to cover the death of the policyholder due to COVID-19.
Let us check it now.
Talking about the people who have the insurance policy already, if a person dies due to this COVID-19, the nominee of the policy holder will be getting the sum assured as a death benefit.
Santosh Agarwal, the Chief Business officer, Life insurance, Policybazaar says-“If the deceased person had a life insurance policy, then the nominee or the beneficiary nominee must know that the death caused by health-related issues are generally covered under a life insurance policy including term insurance,”
At the time of buying the policy, the holder, the policyholder must list out the names for their nominee who will be given the benefit if the person dies. Once they do so, the amount will be given if something happens unfortunately.
Santosh added- “Existing life insurance policyholders are covered. While some life insurance policies have exclusions for a specific cause of death, coronavirus will be covered if you already have an existing life insurance policy.” She added, “In the rare event, if you die from a pandemic illness, your beneficiary will receive the death benefit.”