Many people have asked during this COVID-19 Pandemic if Life Insurance is important to have or does the coverage apply to death caused by COVID-19. Some ask, has Life Insurance gotten more expensive or should I wait to get Life Insurance or is it more essential to have it now .. We answer some of these topics for you.

Does life insurance cover COVID-19?

Yes. Unless you already had COVID-19 or recently traveled to affected areas and didn't disclose that when you applied, your policy will cover you if you pass away due to COVID-19. Life insurance companies cannot change the terms of coverage for active policies, so anyone who was covered remains covered.

Has COVID-19 made it harder to get a new life insurance policy?

If you've been infected with the coronavirus or have recently traveled to a region with a heavy outbreak, applying for life insurance could take longer and be much more expensive. More recently, some insurers have stopped selling policies to customers older than a certain age. Terms and rates may change as life insurance providers continue adjusting to the situation.

However, the situation has made life insurance easier to obtain in one respect: no exams. For example, some Insurance Companies announced that they would remove the requirement for on-site medical exams because social distancing policies and business shutdowns have made such exams impractical.

Other insurers, have extended the exam deadline for new customers while offering temporary coverage that starts right away in many cases. And plenty of online life insurance providers were already offering policies that required no medical exam even before the outbreak began. You can easily get a free quote from such providers and compare your options.

What steps have life insurance companies taken in response to the coronavirus?

If your income has been affected because of a layoff or furlough due to the impact of the pandemic on your employer's business, it may be worth calling your life insurance company to see what options it has made available to work with customers in your situation. Several companies have signaled that they are willing to defer premium payments for the time being.

Will COVID-19 have an impact on life insurance requirements in the long term?

It's too early to know for certain. Some recovered patients are said to have suffered lasting lung damage, but medical professionals will need more time to assess the true long-term impact of the coronavirus. If there are lasting consequences, life insurers may incorporate that information into their underwriting standards, which could affect the cost of coverage for COVID-19 survivors.

According to some researchers, it's also possible that COVID-19 could last beyond the current pandemic and join the established family of respiratory illnesses that we deal with every season. Depending on how quickly and effectively new treatments and vaccines are developed, the threat of a recurring COVID-19 season might mean higher costs in life insurance.

Does the current coronavirus pandemic make it more important to have life insurance?

We don't think that COVID-19 significantly changes the answer to whether you need a life insurance policy. Our recommendation has always been that life insurance is necessary for anyone whose death would result in financial strain for another person.

Anyone who provides care or financial support to their family members should have enough life insurance to replace that support for as long as it's needed. Married couples — even those without kids — can also use life insurance to ensure that each spouse can maintain their joint standard of living even if the other passes away.

If you aren't married and don't have any dependents, life insurance is probably not essential for you. However, consider that your situation may change in the near future. If you have a parent whom you expect to support in their old age or a significant other whom you plan to marry, those ties may justify obtaining coverage ahead of time.

 

CONCLUSION

It is always safer to have the discussion and be covered at all times. I am here to help you through any questions you have and help guide you so that you are protected especially now more than ever it's important to make sure you and your loved ones are covered. Please call me anytime for a chat, I am happy to see you in person or work over the phone. Drop me a line today on 719 502 7030 or feel free to set an appointment for me to call or visit you online.

Joe Durst