Life Insurance and COVID-19Life Insurance and COVID-19  

With the effect of COVID-19 still in our communities and on our economy, you may wonder if it has influenced life insurance as well. In this article, we will go over some aspects you should take into consideration if you are looking to purchase a life insurance policy during the COVID-19 pandemic.

Will Your Life Insurance Payout If You Die From COVID?

As a rule, your life insurance policy will pay out your death benefit if you die from COVID. Many insurance companies have begun to pay out claims relating to COVID-19. Additionally, your insurance policy is a contract. This means that the insurance company cannot change the terms of your policy to exclude newfound diseases. However, issues may arise if you have/had COVID or recently traveled to a highly affected area and did not disclose that information on your application. This would only apply to those who are applying for policies during the pandemic, not those in place before it.

Has COVID-19 made It Harder to Apply for a New Life Insurance Policy?

COVID-19 has not particularly affected the ability to apply for life insurance. There are a few more hoops to jump through, but nothing significant. For example. Many companies have introduced COVID-19 specific questions on their applications. You can expect such questions as:

  • Within the last 30 days have you:
    • Tested positive for COVID?
    • Been advised to self-isolate?
    • Had any COVID symptoms?
    • Been in direct contact with anyone who has been diagnosed with or who is suspected to have COVID?

If you answer yes to one or more of the above questions, your application will likely be postponed from processing for at least 30 days.

Companies have also been looking at high-risk individuals such as those with diabetes, who have asthma or are overweight. There have also been some changes during the application process. For example, if you suffer serious symptoms or check i during the processing, the company may postpone approval of your application.

Is Life Insurance More Expensive Now?

For the most part, life insurance premiums have been level throughout the pandemic. However, certain individuals may now be seen as higher risk and thus subject to higher premiums. If you have a condition that puts you at higher risk of contracting COVID you may be subject to higher premiums. Such conditions would include diabetes, asthma, obesity, and being over the age of 50.

Will There Be Any Long-Term Effects on Life Insurance?

The answer to this question is still up in the air. More research will need to be done on the long-term effects COVID-19 has on its patients. If it is found to have serious long-term side effects, additional restrictions may be put into the application process to vet out high-risk individuals and raise their premiums.  

Purchasing a Life Insurance Policy During COVID-19

If you are looking to purchase an insurance policy, COVID-19 should not hold you back. Changes have been minimal and will not affect the average consumer. If you would like help purchasing a policy, contact an insurance agent who can help you navigate the process.

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