Insurance In a World of Coronavirus
Will Life Insurance Cover Covid-19?
As Covid-19 (commonly referred to as the Coronavirus) continues to spread, it’s safe to say it’s affecting EVERY aspect of our day to day life. From working at home, practicing social distancing, preparing for virtual or home school, all the way to economic impacts, and for many what is soon to be personal health impacts – this is a world changing event.
With an event like this comes many questions, which is why our team here at Schuler Insurance Services wanted to clear up a handful of important life insurance questions that we’ve encounters from clients over the past few weeks.
Clearly life insurance is on the minds of many people across the US and the world in the early stages of 2020. According to a recent Forbes article, companies are seeing as much as up to a 50% increase in life insurance applications since mid-February!
Our aim is to discuss these questions and provide clarity to at least one very small portion of our customers and readers life.
If you have other questions please feel free to reach out and connect with our agents anytime!
Will a life insurance policy cover the death of a policyholder due to coronavirus?
This is the question our agents have encountered the most since the start of the Covid-19 outbreak in China. Just like other outbreaks & natural disasters real or anticipated that we’ve encountered, policyholders want to be reassured that they will be covered for the risk facing them and their families.
In this case, if you already had a life insurance policy in place prior to the outbreak, the answer is likely…
YES, your family would still receive the death benefit of your policy.
This is likely true even if you had travelled to the areas where the outbreak was prominent. Life Insurance typically covers pandemics, as long as you were truthful about travel plans, exposure, and travel history during the entire application process.
Will the Coronavirus effect my current life insurance application?
In the United States, there were approximately 27.8 million life insurance policies purchased in 2018. That means that its safe to assume at any given point in time there are somewhere around 1 Million + Life Insurance applications in process. Our team at Schuler Insurance has many in process since this situation has rolled out.
So clearly this question directly affects more people that one would initially think. So, will the coronavirus affect your application?
YES, if you are in process of applying and being approved for a life insurance policy, the current state of Covid-19 will have an effect on the outcome of the underwriting process.
The issuer could hold or even reject the policy if you have potentially contracted the virus or are at risk of doing so. Additionally, there could be added exclusions, that policyholders should be sure to review, discuss, and understand before entering into any agreement.
Will the Coronavirus be covered in future policies?
In the past, it is very uncommon for a life insurance policy to single out any specific illness as a reason to den payment. However, there are specific guidelines that each policy holder should be aware of as they enter into a contract, such as policy holders’ responsibilities to avoid certain risks, or adhere to medical advice, etc.
UNDERTERMIND, would be the full answer to this question.
While we would have historically answered yes, this pandemic is unlike any we have seen before. So, while we are in the middle of this situation its unclear how the insurance industry will react to the situation.
The best advice we can give is to thoroughly understand your policy and every rider, specifically any critical illness rider. Be sure to know what is covered, but also what the expectation is of you the policy holder to ensure that coverage.
Choosing a life insurance policy can be overwhelming, regardless of what’s going on the world during the time. But it becomes that much harder during a global pandemic such as Covide-19. Our agents at Schuler Insurance Services understand this and are here to help!
It’s important to take the time to research your policy, understand the coverage, restrictions, and requirements, and decide only after you feel comfortable with the coverage.
Contact one of our term life experts to discuss your best options when deciding on your own insurance needs and shopping for your coverage. Above all, don’t fail to protect your loved ones by not fully understanding and adhering to the coverage and restrictions in your policy. If you have more questions contact our team at Schuler Insurance Services, anytime.