In a heartening move, the IRDAI (Insurance Regulatory and Development Authority of India) directed insurance companies, both private and public ones, to include death claims filed against COVID-19 deaths for the policies’ benefits. This includes every life insurance policy, from term insurance to other life insurance plans. Accordingly, insurance companies in India have moved swiftly to include claims against both Coronavirus claims and treatment under their plans. What this means is that death claims against diagnosis and treatment of COVID-19 will now be treated like any other death claim under the aegis of the term policy.

However, several customers in the country were left wondering if the ‘force majeure’ clause would apply to COVID-19 claims. To explain, the ‘force majeure’ clause is understood to be any unforeseen act of God or nature or a manmade situation like riots or terror strikes. Insurers normally include this clause to inform customers that claims filed against it will make the claim null and void. However, this does not apply to COVID-19 claims.

Term policies in the time of the Coronavirus
It is a good move by the IRDAI to include Coronavirus death claims in life insurance plans in India. You can make the most of the enforced lockdown in India to research and buy online term insurance plans from reputed life insurers in the country.
When buying term plans online, ensure that you:

• Look up term policies from leading insurers only. 
• Get the highest sum assured coverage for the riders and terms you choose. 
• Can buy the term insurance plan online without the need for offline payment or medical checks. 
• Can get tax benefits under Sec 80C against the premiums paid 
• Get an easy claims file process that your nominated family member can follow in your absence 
• Buy a policy with these benefits: Limited pay term life insurance policy, liberty to choose the premium payment terms (for example, 10 years, 15 years or 20 years) with coverage up to 85 years of age, waiver of premium in case of unfortunate demise while policy is still active, and critical illness rider.
• Buy a policy that includes term insurance for your spouse – leading term insurers offer couple term insurance as well, under the ‘Better Half Benefit Option’. This helps your spouse get the full benefits of the policy upon your unfortunate demise without paying additional premiums. 
• Understand the terms and conditions under which the term policy allows a death claim against COVID-19. This means that the claimant’s diagnosis and hospitalization documents, as well as death certificate ratifying the cause of death as Coronavirus, must be submitted with the completed claims form. The insurer can explain these terms when you ask the query online.

Why term insurance helps: The best way to secure an uncertain future
The biggest benefit of taking term insurance is that it costs you little while offering a huge sum assured. You can pay a premium of a few thousand Rupees but secure your life and loss of income against premature demise, with a sum assured that runs into crores of Rupees.

Leading insurers are quick to disburse the sum assured amount to the policy holder’s nominee, in the event of the former’s untimely death while the policy is active. The nominee (must be an immediate family member) can use the sum assured amount for the family’s future upkeep. Term insurance money is often used for:

• Children’s education and/or wedding
• Spousal support
• Household maintenance
• Emergency medical costs
• Unpaid loans
• Expensive house remodel, purchases like second car, smaller house, etc.

Though you are at home and practicing social distancing, it is possible to buy term plans online for yourself and including your spouse from a life insurance company. It does not cost you much while offering so much for your family members. At a time when the future seems uncertain, you can rest assured in the certainty that the term policy will protect your loved ones in your absence.