Will Current Life Insurance Policies Cover Coronavirus?
Perhaps the most important question for current life insurance customers is whether their policy will pay out for a coronavirus-related death. And the good news is that yes, COVID deaths are covered.
There are some considerations to keep in mind, though.
If your policy was recently purchased, certain inconsistencies could nullify your death benefit. For instance, if you failed to disclose recent travel, health concerns, positive COVID-19 test results, etc. when applying for coverage — and were to pass away in the near future — your insurer could deny your beneficiaries’ claim.
As with any insurance purchase, it’s imperative to be as truthful and forthright as possible to avoid this situation.
Additionally, there is nothing stopping issuers from adding COVID exclusions to policies that are issued now or in the future. Be sure to read the fine print of your policy to know exactly what is and is not covered, and ask your agent if you need clarification. However, existing policies cannot be changed retroactively, so coverage for a COVID-related death is not a concern for long-standing policyholders.
How COVID-19 Has Changed Life Insurance
It may not be surprising to hear that many life insurance carriers are being more cautious right now. Most have been tightening up their policy approval criteria, and some aren’t even issuing policies for specific groups of applicants (such as those with very serious health conditions) for the time being.
You may also find that medical exams and the underwriting process as a whole could possibly take longer than usual these days, in the wake of the pandemic.
Many LeapLife customers can be matched with policies and issuers that may not require a medical exam. Get your rate here and see which options are available to you!
If you already have life insurance coverage and have been financially impacted by COVID-19, there may be relief programs available if you are struggling to pay your premiums on time. While many issuers build small grace periods into their policies, these new programs may offer further relief if you need it.
Can I Buy Life Insurance During a Pandemic?
The good news is that overall, yes, you can buy life insurance during a pandemic. The vast majority of issuers are still offering quotes, accepting applications, and issuing new policies, even though the coronavirus is still a concern worldwide.
For instance, through LeapLife, you can still search for up to $5 million in life insurance coverage in just minutes, with terms ranging from 10 to 40 years.
It’s just important to note that the buying process may look a little different than it did pre-pandemic. Also, certain issuers have implemented new exclusions, so for certain individuals, buying life insurance coverage may not be possible for the time being.
What If I Have Been Diagnosed With COVID-19?
Even if you have been diagnosed with the coronavirus, you are still eligible to purchase new life insurance coverage. However, most carriers will have stipulations that limit how soon you can buy that policy.
You should plan to wait at least until you have recovered from COVID to purchase life insurance. As with pre-pandemic underwriting, you’ll need to answer questions about your current health and past medical history, which could affect your application’s approval. If you are still managing certain COVID-related symptoms, or tested positive very recently, you may be denied or asked to apply again at a later date.
COVID May Limit Who Can Buy Life Insurance
Since age is a significant risk factor for COVID-related complications, many carriers have suspended new policy sales for older adults. These new regulations will vary from one insurer to the next, but typically apply to those age 70 or older. If you fall into this category, you may find that your life insurance options are more limited than usual.
Additionally, if you are still traveling regularly or plan to travel, especially to certain countries, you may not be able to buy a policy right now. While international travel has always been a common life insurance application consideration, it is now a much bigger concern for issuers in light of the worldwide pandemic.
Pandemic or no pandemic, buying life insurance coverage is an important way to protect both your loved ones and your assets. While COVID-19 has impacted the life insurance-buying process in some ways, purchasing a policy can still be a quick and affordable experience for many.
LeapLife is ready to match you with offers from a number of leading providers that are still actively issuing new policies. Click here to learn more and get personalized pricing!