The Impact of Coronavirus on Life Insurance
Most people wouldn’t have ever thought that life insurance and Coronavirus would be used in the same sentence. Even less than a year ago, Coronavirus wasn’t a term that many people had even heard of, let alone used as part of their daily vocabulary, so the idea of life insurance and Covid 19 wasn’t even given a thought.
However, with the developments and dramatic increase in the rate of infection of the virus, it’s more important than ever to be aware of it and how it can affect things like your life insurance policy.
In this guide, we’ll take a look at the impact of Coronavirus on life insurance, whether you’ll be covered under your current policy if you contract the disease and what you can do in the future when applying for life insurance policies to ensure that you’re fully covered.
If you’re asking the question “will life insurance payout for Coronavirus?”, you can expect different answers from different insurers.
As it currently stands, it appears that most life insurance providers are offering cover for Coronavirus. This is largely because it’s not part of the listed exclusions, so you should be covered in the unfortunate event that you pass away as a result of Coronavirus.
Your life insurance policy should cover you if you pass away from Covid 19, providing that you supplied your insurer with as much accurate information about yourself and the state of your health before you took out the policy.
However, it’s important to double-check with your policy provider as numerous life insurers updated their policy exclusions list to include things like pandemics after the SARS outbreak, so it really is dependent on each individual provider.
Both the inclusions and exclusions might be listed clearly in your policy, but if not, make sure to get in touch with your provider to check whether you’ll be covered by your policy or not.
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If you currently have a life insurance policy in place, then you should be fine and you should be covered if you die from Coronavirus and your family needs to make a claim on your policy.
However, if you’re looking to take out a life insurance policy after you’ve had Coronavirus and are currently in the process of recovering from it, or have lasting complications as a result of Covid 19, you could face a few predicaments when applying.
Naturally, it will differ on a case by case basis, as not everyone is affected in the same way by Coronavirus. Some people may recover in less than a month and be symptom-free and can apply for a regular life insurance policy as normal. Whereas others may have ongoing complications for months on end, which could affect their application for a life insurance policy, depending on the insurer.
If you’re looking to apply for a new policy after having Covid 19, your insurer might ask additional questions such as “have you been treated in hospital for Coronavirus?”, “are you currently suffering from symptoms such as breathing difficulties, a bad cough, loss of taste and/or smell or a high temperature?” or “do you need to self isolate after coming into contact with someone with Coronavirus?”.
These questions will be asked to help determine the validity of your application, but it does appear that most life insurance providers are still offering cover for Covid 19.
It’s important to carry out thorough and extensive research when looking into Coronavirus life insurance policies as there could be exclusions such as respiratory diseases for example, which you might not be covered for after having Coronavirus.
However, some insurers will pay out if you suffer from lasting effects from Coronavirus such as kidney or liver failure or respiratory diseases and consequently pass away as a result of these things; it all depends on your life insurance provider.
Ensure that you conduct proper research into the potential inclusions and exclusions of your policy.
As Coronavirus is still relatively new, it’s currently not considered to be covered under critical illness cover as it’s not specified as a critical illness in most current policies.
Of course, that could change over time if the virus continues to spread and affect people; many life insurance providers and indeed, insurers of all kinds, might update their policies so that people are covered if they contract Coronavirus and suffer from complications as a result of the disease.
Furthermore, if you contract Coronavirus and it leads to another serious condition that is included on your life insurance policy, then you will be eligible to make a claim, as it won’t be considered to be directly related to Covid 19.
Each critical illness policy supplied by different life insurance companies will differ in exactly what they cover, so if you’re thinking of taking one out, ensure that you’re aware of absolutely everything that you’ll be covered for under your policy.
If a global pandemic isn’t part of the exclusions of your life insurance policy, then you should still be covered even if you contract Coronavirus while on holiday.
Again, some insurers and policies may differ, so it’s a good idea to be aware before you travel, so that you’re better prepared with the knowledge of whether you’ll be covered if you do happen to catch Coronavirus while abroad.
This should also apply if you contract the virus from someone else who has been abroad, even if you haven’t.
You can’t prepare for every eventuality with regards to Covid 19 as it’s such a new and unprecedented disease, but as long as you take the necessary safety precautions and abide by government laws in both your home country and the country you’re travelling to, as well as being aware of your policy inclusions/exclusions, you should be well prepared.