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Does Life Insurance Cover the Coronavirus(COVID-19)?

Coronavirus (COVID-19) has been declared as a global pandemic by the World Health Organisation (WHO). This disease has affected almost 25 lakh people worldwide and has resulted in the deaths of 1.7 lakh people at the time of publishing.

There is panic all over the world. People are living in self-quarantine and not even stepping out of their homes. Naturally, many people are concerned about their family members. With the onset of a global pandemic, people are forced to ask tough questions. What will happen to their loved ones if something happens to them? Will a life insurance policy cover them if they die due to COVID-19?

Should You Be Worried If You Have Term Life Insurance Policy?

The onset of COVID-19 has resulted in a 40% increase in sales of term life and life insurance policies. We all know that term life insurance policies cover most deaths. As such, some people may not be worried about the fate of their families after their demise. But most people are not aware that their term life insurance policy does not cover certain types of deaths, and the insurance company might not reimburse the premium amount to the policyholder.

Insurance companies seldom explain all the aspects of a term life insurance policy to their customers. Therefore, people are often unaware of what aspects their insurance plan does not cover.

On that note, let us see which types of deaths are not covered under the term life insurance policy.

Types of Deaths Not Covered Under the Term Life Insurance Policy

A term life insurance policy does not cover some causes of death. These special clauses are included in the policy to safeguard the insurance company and avoid insurance fraud.

Before we can tell you if death due to COVID-19 is covered under your standard insurance plan, you need to know about those cases which a term life insurance policy does not cover.

1. Death Due to Accident

Typically, all term life insurance policies provide coverage for accidental demise. But, they can refuse to honour the claim if the insured person died by driving after consumption of intoxicating drugs or alcohol. Some policies also don't cover deaths due to adventure sports.

2. Suicide

Suicide within the first 12 months of policy issuance or revival whether medically sane or insane is not covered.

3. Self-Inflicted Injuries

If a person dies due to injuries from self-harm, insurance companies can reject the claim of the policyholder.

4. Death of Policyholder Within First 2 Years

Such cases are considered under Section 45 of the Insurance Act, 1938. The insurance company may reject life insurance policy claims on the grounds of insurance fraud, misinformation, or even misrepresentation if they are able to prove the same.

5. Murder or Homicide

If a person who has purchased a term life insurance policy gets murdered by someone, the claim request will be halted by the company for investigation. The claim will get rejected if the beneficiary is found guilty of murdering the policyholder. However, if proven not guilty, the beneficiary will receive the total claim that the insurance company promised.

6. Death Due to Natural Disasters

The insurance company is not bound to pay any benefits that the term life insurance policyholder has purchased if he dies due to a natural calamity such as tsunamis or earthquakes. However, certain insurance companies offer special policies that cover death due to natural disasters. Depending on what plan you have opted for, the company will either grant your claim or reject it.7. Death Due to STDs (Sexually Transmitted Diseases)

A policyholder loses all the benefits of a term life insurance policy if he dies due to a sexually transmitted disease such as HIV or AIDS.

8. Death Due to Natural Reasons

The insurance company is not obliged to pay the recipient if the policyholder dies in the first two years of the claim due to a pre-existing disease which he has not declared while purchasing the insurance policy and the same is proven.

9. Death in Labor

If a policyholder dies during childbirth, the term life insurance policy will not honour the claim made by the beneficiary.

Does This Mean That Death Due to COVID-19 Is Not Covered?

Your term life insurance policy will cover deaths due to COVID-19. For existing policyholders who have purchased the term life insurance policy more than two years from now, the policy will cover their deaths no matter what happens.

For people who have not yet completed the two-year period of their plan, they too will get covered by their life insurance policy. COVID-19 appeared only months ago, and the insurance company cannot reject the claims on the grounds of insurance fraud or misinformation. For people thinking of buying a term life insurance policy now, this policy will cover your demise, too. But you should keep in mind that insurance companies determine the premiums based on your medical conditions and health. If you have applied for a term life insurance policy and contracted COVID-19 during the time of the purchase procedure or have a foreign travel history, your application might get rejected.

Furthermore, if you have bought an insurance policy recently and you hid the fact that you were corona positive before the policy came into action, the insurance company has all the right to refuse your claims.


This might not be the right time to buy a term life insurance policy as the global pandemic has resulted in a steep rise in the prices of policy premiums. But if you are looking to buy one for yourself or your family, rest assured that your term life insurance policy will cover you if anything happens to you or your family.

Moreover, every person who owns an insurance policy must know which aspects are included in the plan. Read the documents of the life insurance policy very carefully and get clarity on any complicated terms that you have not understood.