Edelweiss Tokio launches COVID-19 life insurance policy
9 Novemeber 2020
Edelweiss Tokio Life Insurance on Monday launched Covid Shield+, India's first individual COVID-19 life insurance product, to help policyholders secure their savings against the ongoing pandemic. Covid Shield+ can be bought online or through an advisor representing Edelweiss Tokio Life by people within the ages of 18 to 65 years.
With premium rates starting at Rs 5,329, Covid Shield+ offers a critical illness benefit of minimum Rs 10 lakh post 24-hour ICU or HDU hospitalisation owing to COVID-19. Adding to it, on diagnosis of the virus, the product also providers minimum enhanced term cover worth Rs 25 lakh sum assured. Considering the importance of a quick issuance in the current pandemic situation, the product does not require any medical examination and provides instant decisioning to the policy applicant.
"Staying true to its tradition of product innovation, the life insurer was guided by customer insights on vast deviations in private healthcare cost and an increased sense of financial uncertainty during this ongoing pandemic," said Edelweiss Tokio Life Insurance, a joint venture between India's Edelweiss Financial Services Ltd and Japan's Tokio Marine Holdings.
The company said that Covid Shield+ carves out a new niche product category for the industry, which caters to people's increased protection needs, arising because of the pandemic. The product, which carries a 1-year tenure, offers a substantial critical illness benefit, a term cover, is cost effective and offers instant decisioning without any medical examination, it said.
Commenting on the product launch, Subhrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance said, "We have always strived to create relevant innovation, in line with the changing customer needs. Through our recent customer interactions, we realised that the threat of financial impact has made this disease even more daunting. People are worried that a COVID-19 diagnosis will disrupt their savings and therefore their long-term aspirations. We want to take away that worry from our customers through Covid Shield+ and let them focus on a healthy recovery instead of their finances."
"There were several factors that contributed to this product design. While ICU/HDU hospitalisation can be an expensive affair, the peripheral and post-hospitalisation costs for recovery are also significant. There is also a considerable risk of income loss if the breadwinner does not survive the disease. Some families are already combating worries of job loss and any huge healthcare expense could completely deplete their savings. Covid Shield+ is a comprehensive solution that provides financial protection against any such eventuality," Mukhopadhyay added.