One of the most important personal finance lessons many of us have learned from the novel coronavirus pandemic is the importance of getting insurance and getting an adequate amount. Now, with the second wave of coronavirus spreading across the country like wildfires affecting record numbers of people every day, it's time to review your insurance coverage, both health, and life.
Do You Have The Right Insurance Policies To Protect You From Covid-19? If not, how should you fill the gap? Read on to find out how you can choose the right insurance coverage - should you choose specific Covid insurance coverages or should you choose a full-term health plan?
Covid-specific insurance covers
In 2020, insurance companies introduced Corona Kavach and Corona Rakshak covers based on guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI). These standard health insurance policies cover the cost of treating coronavirus disease. These policies will be published for a very short time and were supposed to remain in effect until March 31, 2021. Irdai has now allowed insurers to introduce and renew established health policies for Covid-19 until September 30, 2021.
The Corona Kavach policy is offered as health coverage by the insurance company for individuals and families on an indemnity basis. While Corona Rakshak is offered by the insurance company on a profit basis.
When should you go to Corona Kavach?
This is a compensation-based health insurance policy that reimburses your actual expenses for treating the novel coronavirus disease. It covers Covid-related hospital expenses, home care treatment expenses, medical expenses for Ayush's treatment, and medical expenses before and after hospitalization. To purchase this policy, you must be between the ages of 18 and 65. If you have children under the age of 18, you can choose the family float option to include your dependent children and parents.
Corona Kavach has the lowest initial cooldown period of 15 days compared to 30 days for comprehensive health plans. The guaranteed amount for Corona Kavach ranges from Rs 50,000 to Rs 5 lakh.
These plans are affordable, allowing you to purchase protection separately for each family member. While a single comprehensive health insurance policy with a guaranteed amount of Rs 5 lakh usually comes with a premium of over Rs 10,000 with most insurers, you can get a Corona Kavach Cover of Rs 5 lakh for Rs 1,300 to Rs 3,000. For example, you can get Rs 5 lakh Corona Kavach Cover from Oriental Insurance at Rs 1,272, and from Star Health & Allied Insurance at Rs 2,965. Other insurance companies charge a higher amount for the same amount of coverage.
The Corona Kavach deck comes with tenure options of three-and-a-half, six-and-a-half, and nine-and-a-half options.
Who Should Choose It: If you have a comprehensive health insurance plan for your family that has a certain amount sufficient to support concurrent hospitalizations for all family members, you do not need additional health insurance.
However, if you do not have a health insurance policy or the guaranteed amount of your health plan is not enough to take care of the whole family, then you should opt for the Corona Kavach policy. Naval Goel says: "If anyone has not invested in any type of health plan, this specific policy for COVID19 is a good option that must be bought urgently without wasting time in knowing the reality of the disease that is currently spreading in the country", the founder and CEO of PolicyX.com, the insurance comparison portal.
When should you go to the Corona Rakshak?
The Corona Rakshak policy is a benefit-based plan where 100% of the insured sum is paid to the insured if they are taken to the hospital in accordance with the terms and conditions of the policy. The policy will cover only individuals.
Instead of reimbursing the actual costs of treatment, this policy pays the full benefit amount in the event of a COVID-19 infection above a specified risk level. To be eligible for the full guaranteed amount, the insured must stay in the hospital for at least 72 consecutive hours.
The guaranteed amount ranges from Rs 50,000 to Rs 2.5 lakh. To purchase this policy, you must be between the ages of 18 and 65. This policy also comes with the same tenure options as the Corona Kavach policy, which is three and a half months, six and a half months, and nine and a half months.
Who should choose it: In the event that you already have a health insurance plan but believe that it may not be enough in the event that the whole family requires simultaneous treatment or you feel that the out-of-pocket costs may be high in the end, you can choose per Corona Rakshak policy as an extra pillow. This policy gives you the flexibility to spend money the way you prefer.
When should you go for comprehensive health or a term plan?
If you don't have any life insurance protection, these coronavirus plans, which offer very little coverage, may not help much, especially if the policyholder dies from Covid-19. Therefore, it is better to look for a basic plan that will financially secure your family after your death.
“Given the outbreak of the second wave and the severity caused by COVID-19 in recent times, it is imperative to have a life insurance plan in place as soon as possible to ensure the future of the family in the event of the death of an individual. , it is always emphasized that a policy must be purchased. Life insurance early in life to enjoy its benefits like a lower premium with higher returns and smart planning for your family's future, "says Goel.
Also, if you do not have a basic comprehensive health insurance policy, it is time to hire it. There are many cases of people developing other complications after recovering from the coronavirus. Covid plans come for a very short time and may not provide long-term protection.
“First of all, it has been observed that COVDI19 has long-term side effects on the affected body requiring treatment that goes beyond COVID19-related expenses that are not covered by specific COVID19 policies but that the standard health plan takes to care for the same. Also in case, there is a side effect, Goel says that the effect is The hospitalization of the COVID19 vaccine is also being taken care of through the health plan, unlike the specific COVID19 that is limited to hospital admission for the COVID19 disease.
Keep in mind that if you didn't buy a comprehensive health plan before contracting the coronavirus, purchasing one after recovery would be difficult.
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