Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan.

Kotak e-Term

Protect your family's financial future.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan.

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family.

Kotak Assured Pension

A plan that offers immediate or deferred stream of income

Kotak Lifetime Income Plan

Retirement years are the golden years of life.

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover.


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Relevance of Term Insurance Plans Bought During Covid-19 Pandemic

While the pandemic may be the past, buying term insurance during the COVID-19 pandemic was considered a good decision and can still be helpful for future financial planning.

  • 1,452 Views | Updated on: Mar 01, 2024

The relevance of term insurance plans bought during the COVID-19 pandemic can be considered from two perspectives: their immediate impact and long-term significance even after the pandemic subsided. The pandemic might be over, but the impact of plans bought at that time is still persistent and supports the policyholders.

While the COVID-19 pandemic was a difficult and uncertain time for everyone, it did highlight the importance of financial protection and led many people to consider buying term insurance. The infection rates were high, and the mortality rates were significant. With so many lives lost, people realized the need to safeguard the well-being of their loved ones against uncertainties. If you have financial dependents and outstanding debts, any time is the right time to invest in term insurance as a safety net for your family.

Life Insurance Application Process During the Pandemic

Life insurance companies issued new term plans during the pandemic. However, most were asking for COVID-19-related disclosures. People had to provide information like:

  • Whether you or your close family members had to undergo COVID-19 diagnostic tests
  • Whether you have already tested positive or are awaiting results
  • If you or any family member has recently received treatment for COVID-19 symptoms like sore throat, fever, breathing trouble, etc.
  • If you traveled abroad within the past few months
  • If you have come into contact with any COVID-positive individuals in the previous weeks

On the basis of the information provided, the following cases were raised:

  • CASE 1: If you do not have COVID-19 symptoms - You can buy term insurance outright.
  • CASE 2: If you show COVID-19 symptoms, the insurer may temporarily postpone your insurance.
  • CASE 3: If you have traveled to a foreign country recently - The insurer may advise you to wait for some time before reapplying to ascertain that you are not at risk of contracting the disease.
  • CASE 4: If you acquire the infection during the application process - You must reveal this information to the underwriter. Otherwise, the insurer can deny the claim later.

Did the Insurer Honored Claims Raise Due to COVID-19?

Life insurance companies in India accepted COVID-19 claims. These claims were settled under certain conditions:

If You Contract the Disease During the Waiting Period

The waiting period starts when you receive your policy documents. The coverage of the policy will begin after this period. If the death happens during this phase, the company is not liable to settle any claim.

If Your Policy is Active

Your insurer will honor your beneficiary’s claim due to COVID-19 if your policy is in force during the unfortunate incident.

Impact of Term Plans Bought During COVID-19 Pandemic

With the onset of the pandemic, medical bills were high, which made people turn to insurance companies for support, which they got. People who did not have any policies bought insurance plans to safeguard further their savings and the lives of their loved ones. Some of the immediate impacts of term plans brought during COVID-19 are:

Heightened Awareness of Mortality

The pandemic underscored the fragility of life and the potential vulnerability of families in case of the breadwinner’s loss. Term insurance provided a much-needed safety net, offering financial protection to families amidst widespread job losses and economic uncertainty.

Cost-effective Solution

Compared to other life insurance options, term insurance offers high coverage at relatively affordable premiums. This made it financially feasible for many individuals, even those facing economic hardship, to secure their families’ future.

Increased Focus on Health and Preparedness

The pandemic encouraged people to prioritize health and well-being, leading to interest in term plans with additional riders like critical illness cover or accidental death benefits. Some plans even offered specific coverage for COVID-19 hospitalization or death, providing immediate relief during the crisis.

Long-term Significance of Policies Bought During COVID-19

COVID-19 insurance plans are still relevant while providing financial support to the policyholders. Some of the long-term impacts of plans bought at the time of COVID-19 are:

Continued Financial Security

While the pandemic’s immediate threat may have lessened, the need for financial protection against unforeseen events remains. Term insurance purchased during the pandemic continues to offer long-term peace of mind, ensuring that families are covered in case of the policyholder’s passing, regardless of the cause.

Evolving Needs and Changing Priorities

Even as circumstances change, term insurance can adapt to evolving needs. Many plans allow for flexibility in premium payments or coverage adjustments, enabling policyholders to tailor their coverage to changing circumstances.

Increased Accessibility

During the pandemic, many insurance companies adapted their application processes to allow for online submissions and medical questionnaires, making it easier and more convenient for people to apply for term insurance.

Investment in Peace of Mind

Beyond the financial aspect, term insurance provides a sense of security and peace of mind, knowing that loved ones are protected regardless of unforeseen circumstances. This mental and emotional well-being carries significant value and contributes to overall quality of life.

Way Forward

Term insurance plans bought during the COVID-19 pandemic provided immediate relief and protection during a difficult time and continued to offer long-term value and security for families. They serve as a reminder of the importance of preparedness and the need for financial safeguards against life’s uncertainties, even beyond the pandemic’s shadow.

Key Takeaways

  • COVID-19 sparked awareness of life’s uncertainties, leading many to invest in term insurance as a safety net.
  • Insurers adapted during the pandemic and issued new plans with stricter COVID-related disclosures and claim conditions.
  • Affordable coverage helped families facing pandemic-related hardships like job losses and medical bills.
  • Policies remain relevant beyond the pandemic, offering long-term financial security, adaptability, and peace of mind.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435