Pandemic may cut life policy cover
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The situation in life insurance is similar to health where insurers are cautious in terms of accepting proposals from those who have recently recovered from Covid and impose a waiting period or exclusions.
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(This story originally appeared in on Apr 28, 2021)Chennai: Life insurance companies have turned cautious and tightened underwriting norms for high-value policies in the wake of the Covid pandemic and pullback by reinsurance companies citing low rates in India.
Obtaining a cover is particularly challenging for those who have recently recovered from Covid as the company requires further screening. A year ago, a 35-year-old could purchase a Rs 1-crore term cover after a telemedical check-up. However, if he had contracted Covid, he would have had to undergo a battery of tests.