Learn more about it on Tariq Carrimjee https://tariqcarrimjee.com/health-life-insurances-in-a-covid-19-world/

1. Health & life Insurances in a Covid-19 world
Health & lifeinsurancearethe two most important elements in personal finance.In pre Covid-19 world,there
used to be specific formulas to look ateach element. Age used to be a big factor in determining the premium
amounts. Younger the person, lesser used to be the premiums. That’s why all insurancecompanies emphasised on
the need to get health & lifeinsurances ata very early age. Apart from the age, aspects likeany previous illness,
surgeries,and lifestylehabits such as smoking& drinkingused to be major drivers of the premium amount. This
formula has become very tricky in a Covid-19 world.
How expensive would health insurance be in a covid-19 world?
If there’s one lesson that everyone has learntfrom the covid-19 pandemic itis that ‘health is wealth’. But health is
something that you don’t build overnight.You nurture and carefor it rightfrom childhood.So whilepeople have
started focussingon health aspects,they have also realised the need for a comprehensive health insurance
package. Before covid-19,surgeries likecoronary artery bypass graft(better known as heart bypass surgery) used
to be the benchmark in evaluatingyour insurancecoverage.This would usually cometo a figure of around ₹8 Lacs
and that is whateveryone would cover themselves for. However with privatehospitalschargingupwards of ₹16
Lacs for Covid-19 treatment & care, everyone is surely goingto revise their coverage to around ₹20 lacs per year.
This would mean more expensive premiums. Expect to pay exponentially more if you have conditions such as
diabetes, high blood pressureor have lifestylehabits such as smokingand drinking - sinceaspects likethese are
likely to increaseyour risk to Covid-19 infection.Since Covid-19 is also very contagious,expect even higher
premiums for health insurancefor your family.

2. Insurancecompanies arealso surely expected to know the Covid-19 history of their consumers and could chargea
higher premium to those who have had Covid-19 infection. This is for the simplereason that the longterm health
effects of Covid-19 areunknown and insurancecompanies mightwant to hedge their risk againstsuch an
exposure.
How expensive would life insurance be in a covid-19 world?
Many experts have predicted that Covid-19 would become cyclic in nature, appearingevery decade with a
different mutation of the virus.People above 50 years of age have been seen as vulnerableand this is where
insurancecompanies seetheir risk.Hence the lifeinsurancepremiums for those over 50 years of age would
definitely increase.Also,as per experts, when the virus mutates itself itcomes back with a different level of
lethality.If Covid-19 is to become a cyclic phenomenon that appears every 10 years and threatens human life,then
insurancecompanies would again liketo lessen their risk exposurehere.
As in the caseof health insurance,lifeinsurancewould also definitely become more expensive for those with a
history of Covid-19 infection.
But, Covid-19 has also taughtthat ‘health is wealth’, and as PrimeMinister Narendra Modi said,“Jaan hai to jahan
hai”,people should not be worried about the higher premiums. A higher coverage, for health insuranceas well as
lifeinsurance,is whatpeople should be lookingat.