Coronavirus Cell

Can I still take out life insurance during the coronavirus pandemic?

In recent weeks, the lockdown may have given you more time for reflection. You may also have got round to doing all those little admin jobs you’ve been putting off for ages.

When watching or reading the news you may have been affected by the frightening death tolls that Covid-19 has caused across the globe. You may have friends or family who have been affected by the virus. You may even be considering your own mortality, particularly if you have dependents.

As an adult with children, a partner, elderly parents or a mortgage, the responsible thing to do is to make sure you have sufficient protection in place. During a risky period in history when many people are dying, you may think that insurance companies are reluctant to take on new business.

However, most insurers remain open for business and are actively taking new applications for cover. Here’s why there’s no need to put off getting your life insurance quotes despite the coronavirus pandemic.

 

Life insurance companies open for business

While you can still head online and compare life insurance quotes, and apply for the cover you need, there are a few things to bear in mind:

  • The underwriting questions you will be asked may have slightly changed. Some insurers are asking questions about whether you have experienced any symptoms of coronavirus or whether you have been diagnosed with the virus. So, you can expect to answer one or more additional questions as part of the application. 
  • It may take more time to process and underwrite your application than in normal circumstances. Along with many businesses, insurers have been forced to transition into remote working and so there may be slight delays in service standards.
  • If a medical screening is required as part of your application – perhaps because of your age, existing medical history, or the amount of cover you want – a physical examination cannot currently be carried out due to ‘social distancing’. However, many insurers including AIG Life and LV= have introduced ‘virtual medical screening’ so they can continue to underwrite your application and get your cover in place. 

A good insurance broker can also help you to navigate the changed landscape for life and Critical Illness protection. Contact us if you need any help finding the right cover.

 

Life insurance paying out for coronavirus

It’s also important to note that insurers have been quick to confirm that life insurance policies will pay out in the event that a policyholder passes away due to coronavirus.

For example, Aviva say: ‘If someone has a life insurance policy with us and they pass away due to coronavirus, we’ll pay out, if the claim meets the terms and conditions of the policy.’

Critical Illness cover policies typically won’t pay out for coronavirus as it is not a specified condition on the policy.

However, insurers have said that they will consider claims where policyholders suffer complications from the virus that lead to conditions that are included in their policy, such as kidney, liver, heart or respiratory failure.

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