Only two of nine companies operating in the Kazakhstani life insurance market offer a product under the code name "Stop COVID-19." Though one of LICs has been selling such a policy at the year beginning, it has stopped.
The cost of insurance against coronavirus depends on the risks covered by the insurance program, policy duration, territory and size of the insurance amount for which the client wants to insure his life and health.
The insurance period is one year. The policy cost is 20 thousand tenge; in case of hospitalization the insurance payment is 200 thousand tenge, in case of death of the insured – 1.8 million.
For a 40 thousand tenge policy in case of hospitalization the insurance payment is 400 thousand tenge, in case of death of the insured - 3.6 million.
For a 60 thousand tenge policy in case of hospitalization the insurance payment is 600 thousand tenge, in case of death of the insured - 5.4 million.
“Our product provides the maximum amount of insurance coverage for customers: first, insurance coverage is valid for one year worldwide, secondly, it included such cases as the diagnosis of a disease caused by a coronavirus infection of COVID-19 led to hospitalization, as well as death of the insured as a result of a disease caused by a coronavirus infection of COVID-19,” said Aigul Boranbayeva, the Managing Director of Halyk-Life.
The insurance term is 6 months. The policy cost is 4,900 tenge; in case of hospitalization the insurance payment is 100 thousand tenge, in case of death of the insured – 1 million.
For a 9,800 tenge policy, the insurance payment upon hospitalization is 200 thousand tenge, in case of death of the insured - 2 million.
For a 24,500 tenge policy, the insurance payment upon hospitalization is 500 thousand tenge, in case of death of the insured - 5 million.
“For legal entities, our company has added a new function, coronavirus insurance to the voluntary group insurance program,” the press service of Freedom Finance Life explains.
The difference between the classic program and Stop COVID-19
Financial experts make no secret of the fact that universal life insurance contracts contain the option "death of the insured occurred during the insurance contract term".
“COVID-19 coronavirus infection can be considered as an insured event, since coronavirus infection is a disease and is covered by our funded insurance program and the company will pay the insurance,” assures the managing director of Halyk-Life.
The Freedom Finance Life representatives say that universal life insurance products are not available to all Kazakhstanis, and Stop COVID-19 policies are relatively inexpensive.
Nomad Life reminds that other insurance policies protect people from infection: “Compulsory accident insurance for employees in the performance of their professional duties covers deaths from CVI among employees who worked and contacted an unlimited number of people, if this is confirmed by relevant documents within the framework of the CAI law. Within the framework of voluntary term life insurance (group and individual) and endowment, this disease is also covered in our company.”
In general, the experts recommend insuring not against a specific disease. “It is more beneficial to purchase life insurance products that have a wide coverage for diseases that include acute respiratory viral infections, even those caused by coronoviruses, as well as especially dangerous critical diseases such as cancer, coronary heart disease, and diabetes. Such an insurance policy can be purchased for a period of 1 to 30 years,” said Gulzhan Dzhaksymbetova, the Board Chairman of Centras Kommesk Life.
Cons and pros
Advanced age and chronic diseases in a person are obvious risks. The insurance products against coronavirus have age limit of 18 to 60 years in many countries. “To avoid fraudulent activities, a time lag is included in the policy, the interval between the policy purchase and inception, which can be 7-14 days,” explains the Centras Kommesk Life CEO. - Such insurance can be useful for those who are concerned. We must remember that the policy will not protect against illness, the point of insurance is financial support in case of illness or decease.”
The Freedom Finance Life representatives hold a similar opinion: “Insurance from COVID-19 is relevant for all Kazakhstanis, especially those who take risks every day while being near infected people, or those who often leave home during quarantine for work or business reasons.”
According to Halyk-Life, LIFE-COVID-19 is designed for married couples and people often traveling on business trips.
Nomad Life is positive that the time for a separate anti-virus proposal has not yet come: “To date, the situation with coronavirus infection has not yet stabilized, and new data on morbidity and mortality appear daily. Therefore, talking about an adequate calculation of mortality probability is premature, as complete and unambiguous statistics for morbidity, mortality, complications, effective treatment regimens for the development and evaluation of the cost of this product is not enough."
Statistical data vary even within the framework of one country and depend on combination of many factors, including health organization, hospital equipment and drug stock provision, and even national characteristics. The main comment by our actuaries is that it will be either a very expensive or “non-functional” coverage. It seemed not quite right for us to release a product with a lack of sufficient data. One of the largest reinsurance organizations in the world, our partner, stands in full solidarity with us.
However, doctors say that the risk of dying from a heart attack, stroke, or cancer is disproportionately higher than the threat of a serious complication or death in case of infection with coronavirus.
Photos are from open sources.