Child Life Insurance Market 2021 – How Covid-19 has Impacted Child Insurance

The world was stunned by the emergence of the Covid-19 virus at the beginning of 2020. Anything and everything was brought to a standstill. Markets declined because lockdowns were put in force all over the world. The most unfortunate effects of the Covid-19 pandemic were the people who were infected with the virus and lost their lives, leaving behind families, friends, and relatives.

One of the most common questions on everyone’s minds was how a life insurance policy would work if death was due to a Covid-19 infection. There are many life insurance products like term insurance, Unit Linked Insurance Plans and Child Insurance plans that offer a death benefit if the policyholder passes away. Let us look at how a global pandemic can affect the workings of a life insurance policy.

Effect of the Covid-10 Pandemic on Existing Policyholders

There has never been a more appropriate time to emphasize the importance of a life insurance policy. Life is very unpredictable, and no one could have predicted that a massive pandemic would bring the world to a standstill. It is for this very reason that life insurance exists to protect your loved ones. So if you already have an existing policy, then you have nothing to worry about. A life insurance policy provides a death benefit to the nominee if death occurs due to a medical condition or other health-related issues. A Covid-19 infection is a health-related issue and hence a death caused by the virus is, in fact, eligible for a death benefit to the nominee. So, if you’re an existing policyholder and you pass away due to Covid-19, the insurance company is liable to pay the death benefit.

Similarly, for other insurance products like child insurance plans and ULIPs, a Covid-19 death will result in the death benefit payout.

Effect of Covid-19 Crisis on New Policy Purchasers

If you haven’t yet purchased a life insurance policy and want to do so now, you aren’t very late. As they say, better late than never. However, you must keep in mind that premiums for a life insurance policy or child insurance plan depend on your existing health conditions, among other things. The Covid-19 pandemic has resulted in many deaths and this has led to an increase in the number of death benefit claims. Therefore, if you plan to purchase a life insurance policy now, you may end up paying slightly higher premiums. Additionally, some policy providers may also put Covid-19 deaths on their exclusion list. You must, therefore, carefully read your policy terms and ensure that everything is covered in the policy. 


Even though the Covid-19 pandemic has really struck many sectors, the child insurance market has not been deeply affected. Since a child plan is really about your child’s future 10-15 years down the line, people are still going for it to secure their children’s future. Since a child insurance plan also offers a death benefit to the child if the parent(s) pass away, it is important for you to check if the death caused by Covid-19 is covered in it. A child insurance plan is a long term investment, and hopefully by then, the Covid-19 crisis will be far behind us. 

News Reporter