Term insurance: Covid-recovered patients up against cagey insurers

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Ajeet Sharma (name changed) tested Covid positive last month. He has now recovered and wants to buy a term insurance cover so that his family remains financially protected even when he is not around. Initially, he thought that with the digital modes being so active, he would be able to buy a term insurance policy with the click of a button while sitting at home. To his surprise, he was asked to wait for a few months before he could apply again.

“I have recovered from coronavirus but still the insurer asked me to wait for a few months before buying the policy,” he said.

Ajeet is among many who is looking to buy a term insurance policy after recovering from Covid-19. But due to no clarity around the illness, as it ranges from mild flu-like symptoms to complications requiring immediate hospitalisation, insurers are either asking for additional tests or postponing issuing new policies. Experts said insurers are also asking additional questions for finding details from recently recovered Covid members.

Expert views

“The availability of term insurance for Covid recovered patients may differ from insurance to insurance company. In case of a medical condition insurers generally ask for additional physical tests or they ask to postpone it by at least 3-6 months,” said Sajja Praveen Chowdary, Head- Term Insurance, Policybazaar.com

SK Sethi, director and founder, RIA Insurance Broker, said: “Covid being a recent infection, the post-recovery long-term implications are not fully clear to the medical world. According to experts, there is a possibility of adverse health repercussions over the long term to come and these can be respiratory ailments, lung damage and impairment seen in other organs or organ systems. Predictions are that the incidence of these long-term effects of Covid may raise the losses for insurers. Due to lack of data, ascertaining the future risk is tough.”

Way ahead

Will there be a waiting period for Covid-recovered patients under the term insurance policy?

“Term insurance products are filed after getting approval by the regulator. One cannot change the terms and conditions of the policy without the approval of the regulator. Right now, under a term plan, only suicidal death is not covered for a period of one year,” said Chowdary.