Home & Garden0 min ago
Coronavirus life insurance – what you need to know
Many of us buy protection such as life insurance, critical illness cover and income protection to ensure we and our family are financially protected should the worst happen. It's designed to offer peace of mind in uncertain times, and there have been fewer more unpredictable times than the one we're currently living in.
By the last week in March, more than 400,000 people around the world had contracted the coronavirus, with more than 16,000 deaths. As governments take draconian measures to try and stop the spread of the virus, it's natural to wonder if your insurance will protect you during this once in a generation event.
Contracting coronavirus – life insurance companies paying claims
If you have life insurance, then it is likely that your insurer will have provided clear guidance or FAQs regarding the current situation. Many providers have web pages dedicated to answering customer queries regarding their cover in light of the coronavirus outbreak.
If you have life insurance, it's important to know that, if you did pass away having contracted coronavirus, that your life insurance should pay out.
If you have maintained your premiums, and you were completely honest about any previous medical conditions or symptoms on your application form, then your life cover should pay the sum assured to your beneficiaries in line with the terms and conditions.
Coronavirus life insurance underwriting changes
As people see the mounting death toll as a result of the coronavirus, it may naturally led them to thinking about their own mortality, and what would happen to their family if the worst should happen.
Indeed, Business Insider reports that experts from three different life insurance agencies reported an increase policy applications in March 2020.
If you are considering applying for coronavirus life insurance, experts say that you shouldn't see any significant changes to the cost of cover – even in light of the pandemic. You should still shop around and compare life insurance rates, however, as the cost of insurance varies sharply from one company to another.
Just as you'd shop around for your car or home insurance, it's important also to head online to compare life insurance quotes quotes for coronavirus life insurance.
While the cost of cover may not have changed, you may have to answer one or two additional underwriting questions in light of the current pandemic:
-Some insurers have added a question asking whether you have been diagnosed with coronavirus, or you have experienced any coronavirus symptoms. It's important to answer this question honestly as a failure to disclose information could invalidate any claim.
-Some insurers are asking if you have visited a high-risk country in the recent past, such as Italy or China.
-If you answer 'yes' to either of these questions, your insurer is likely to postpone your cover until test results give you the all-clear, or you have completely recovered.
Service standards at insurers may fall in the short term
Bear in mind that many insurers are working to the same government guidelines as other businesses. So, many of their staff may either be ill, self-isolating or working from home under the national lockdown, and so there may be limited call centre staff or underwriters.
Whether you are the relative of someone who has sadly passed away and you are making a claim, or you're looking to take out coronavirus life insurance, you should expect reduced levels of service while emergency measures are in place.
3 things you need to know about term life assurance
- Term life assurance doesn't have a savings or investment element.
So, you can't cash it in at some point in the future and benefit
from a return
- Term assurance pays out if you die within the term. If you don't
die and the policy ends, you receive nothing - you don't get your
payments back or a payout at the end of the term
- If you don't keep up your payments, your cover will not be valid
and the insurer will not pay a claim.
- Term life assurance doesn't have a savings or investment element. So, you can't cash it in at some point in the future and benefit from a return
- Term assurance pays out if you die within the term. If you don't die and the policy ends, you receive nothing - you don't get your payments back or a payout at the end of the term
- If you don't keep up your payments, your cover will not be valid and the insurer will not pay a claim.
to find out more about life insurance and coronavirus