How to choose the best life and health insurance plans for yourself against coronavirus

One of the biggest personal finance lessons many of us have learned from the novel coronavirus pandemic is the importance of having adequate insurance. Now that the second wave of the coronavirus is spreading like wildfire across the country, infecting a record number of people every day, it is time to review your insurance coverage – both health and life insurance.

Do you have the right insurance to protect you against Covid-19? If not, how should you fill the void? Read on to find out how to choose the right insurance coverage – should you choose the Covid-specific insurance coverage or should you choose a comprehensive health insurance plan?

Covid-specific insurance coverage

In 2020, insurance companies introduced Corona Kavach and Corona Rakshak covers based on the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). These standard health insurances cover the treatment costs for the coronavirus disease. These policies are issued at very short notice and should remain in effect until March 31, 2021. Irdai has now allowed insurers to offer and extend this Covid-19-specific health insurance until September 30, 2021.

The Corona Kavach Policy is offered by the insurer as health insurance for individuals and families on a compensation basis. While the Corona Rakshak is offered by the insurer on a benefit basis.

Also read: Difference Between Corona Kavach, Corona Rakshak and Other Coronavirus Health Insurances

When should you visit Corona Kavach?

This is a performance-based health insurance that reimburses your actual expenses for the treatment of the novel coronavirus disease. It covers hospital costs related to Covid, home treatment costs, Ayush treatment medical costs, and pre and post hospital medical costs. To purchase this policy, your age should be between 18 and 65 years. If you have children under the age of 18, you can opt for a family floater option to include your children and dependent parents.

The Corona Kavach has the lowest initial cooling time of 15 days compared to 30 days for comprehensive health plans. The sum insured for Corona Kavach ranges from Rs 50,000 to Rs 5 lakh.

These plans are affordable, so you can purchase separate protection for each family member. While a single comprehensive health insurance policy with a sum insured of Rs 5 lakh usually comes with a premium in excess of Rs 10,000 with most insurers, you can get Corona Kavach coverage of Rs 5 lakh for Rs 1,300 to Rs 3,000. For example, you can get Rs 5 lakh Corona Kavach coverage from Oriental Insurance for Rs 1,272 and from Star Health & Allied Insurance for Rs 2,965. There are other insurers who charge a higher amount for the same amount of coverage.

The Corona Kavach cover has terms of three and a half months, six and a half months and nine and a half months.

Who Should Choose: If you have comprehensive health insurance for your family with sufficient coverage to support simultaneous hospitalizations for all family members, you don’t need additional health insurance.

However, if you do not have health insurance or the sum insured on your health insurance is insufficient to cover all family members, you should opt for the Corona Kavach Policy. “Unless someone has invested in some health plan, this COVID19-specific policy is a good choice that should be bought urgently without realizing that the spread in the country is pretty widespread right now,” says Naval Goel, Founder and CEO from, an insurance comparison portal.

When should you eat Corona Rakshak?

The Corona Rakshak Policy is a defined benefit plan where the insured is paid 100 percent of the sum insured when he / she is hospitalized according to the insurance terms. The policy only applies to individuals.

Instead of compensating for the actual treatment costs, this policy pays the entire benefit amount if the Covid infection occurs above a defined severity. In order to be entitled to the full sum insured, the policyholder must be in hospital for at least 72 hours without interruption.

The sum insured ranges from Rs 50,000 to Rs 2.5 lakh. To purchase this policy, your age should be between 18 and 65 years. This policy also offers the same term 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: If you already have health insurance but feel that it is not enough, when the entire family needs to be treated at the same time or the out-of-pocket expenses become high, you can opt for the Corona Rakshak policy as an additional one Pad. This policy gives you the flexibility to spend the money your preferred way.

When should you go for a comprehensive health or schedule plan?

If you don’t have life insurance coverage, these coronavirus-specific plans that offer very little coverage may not be of much help, especially if the policyholder dies from Covid-19. It is therefore better to opt for a basic plan that provides financial security for your family after your death.

“Given the second wave outbreak and the severity caused by the delayed COVID-19, it is imperative to get life insurance as soon as possible to secure the family’s future in the event of a person’s death. It is always emphasized that life insurance should be taken out early in life to enjoy its benefits such as lower premium with higher returns and to plan your family’s future wisely, “says Goel.

Even if you don’t have comprehensive health insurance, it’s high time you got one. There are many cases when people develop other complications after recovering from the coronavirus. The Covid-specific plans are very short-term and may not offer long-term protection.

“Primarily, COVDI19 has been observed to have long-term side effects on an infected body in need of medication in addition to COVID19-related expenses that are not covered by COVID19-specific guidelines, but a standard health plan will take care of that. Even in the event of one Side effect.” Effects caused by a COVID19 vaccination that requires hospitalization are also accounted for by the health plan, as opposed to COVID19 specific which limited hospitalization for COVID19 disease, “says Goel.

Keep in mind that unless you complete a comprehensive health plan prior to contracting the coronavirus, purchasing it after recovery will be difficult. Click here to find out why.

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