Max Life's COVID rider to offer Rs 2 lakh diagnosis, Rs 10 lakh death benefit at Rs 2,710
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Max Life's COVID rider to offer Rs 2 lakh diagnosis, Rs 10 lakh death benefit at Rs 2,710

The newly launched Max Life Insurance's COVID-19-specific rider is available on 12 of Max Life's existing products ranging from term plans, savings and income plans to retirement plans

  • September 8, 2020  
  • |  
  • UPDATED   19:58 IST
Max Life's COVID rider to offer Rs 2 lakh diagnosis, Rs 10 lakh death benefit at Rs 2,710

Max Life Insurance on Tuesday launched a COVID-19-specific rider on life insurance policies that will provide up to Rs 10 lakh fixed benefit over and above the base policy benefits if death happens due to coronavirus. The rider will come at a premium of Rs 271-2710 excluding taxes for rider sum assured ranging between Rs 1 lakh and 10 lakh. Moreover, right after the COVID-19 diagnosis, the policyholder will receive 20 per cent of the rider sum insured as a fixed benefit, weather death happens or not.

Take, for instance, a person with a life insurance plan of Rs 50 lakh coverage. If he buys Rs 10 lakh COVID rider (premium at Rs 2,710) and tests positive for COVID-19 during the rider policy term, the insurance company will give 20 per cent of Rs 10 lakh (Rs 2 lakh) right then and if death happens, main policy coverage of Rs 50 lakh and COVID rider cover of Rs 10 lakh, both will be paid.

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"It's an industry first rider in the life insurance space which has diagnosis and death benefit both due to COVID-19. For the diagnosis benefit, you don't require medical bills of the insured life. It is a lumpsum amount provided only on the basis of authorised lab report confirming COVID-19 positive result. Upon death of the insured life, 100 per cent of rider sum assured will be paid," says V Viswanand, Deputy Managing Director, Max LifeInsurance.

The newly launched rider is available on 12 of Max Life's existing products ranging from term plans, savings and income plans to retirement plans. It will be available to customers between the age of 18 and 65 years. Note that the rider premium is only dependent on the amount of cover, not the age. So, irrespective of the age, the higher the rider cover, the higher will be the premium.

"There is no hospital benefit available under this rider. You can add Max Life COVID19 One Year Term Rider to your life insurance policy to provide additional protection benefits in case you are diagnosed with COVID-19. The benefits under this rider are payable over and above the base plan benefits," says Viswanand.

Max Life Insurance launched the rider taking into account the findings of its recent survey titled 'Max Life India Protection Quotient- Express in association with KANTAR. The survey revealed that that when confronted by the thought that COVID-19 could prey on the individual and/or family, 31 per cent respondents in metros and 20 per cent in Tier 1 cities said they bought a life insurance with COVID-19/ critical illness rider.

Waiting period and who can buy

Before you go ahead with buying the rider, you must know there will be a waiting period of 15 days since the policy issuance date. Besides, if you happen to travel abroad during the rider policy term, then the 15-day waiting period will again be applicable after you return to India.

Also note the rider is only available for new policy buyers. Existing policyholders cannot have it even if they hold one of the 12 policies on which the rider is available.

Should you buy

Since the premium on COVID rider is quite affordable for a substantial coverage, it can be considered, especially for elderly who stand higher chances of COVID infection and mortality. If you compare it with fixed benefit COVID policy Corona Rakshak that health insurance companies have launched, Max Life COVID rider may turn out to be a better option since former comes with a policy term of 9.5 months at a slightly higher premium.

"Our product is comparable with Corona Rakshak on which Rs 2 lakh diagnosis cover comes at about Rs 4,000 premium for 9.5 months. On the other hand, we're providing diagnosis cover of Rs 2 lakh at Rs 2,710 along with the death benefit of Rs 10 lakh for 12 months," says Viswanand.

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