Is the Coronavirus Covered by Life Insurance
The COVID-19 pandemic has swept through the US and disrupted the lives of literally everyone. Very few people saw it coming, or at least few ever imagined that the outbreak that started overseas could get this bad here at home. With a mortality rate that is believed to be significantly higher than the regular flu, a lot of people have been compelled to wonder whether their loved ones would be covered if they were to perish because of the coronavirus.
Here is what you need to know about the coronavirus as it relates to life insurance:
Existing Life Insurance Policies are Not Affected by the COVID-19 Outbreak: If you have a life insurance policy that was in force before the coronavirus came to our shores, it will still provide a death benefit to your beneficiaries if you pass away from complications related to COVID -19. This is true even if you recently traveled to a country that has experienced a major outbreak of coronavirus cases.
Life insurance policies contain various exclusions, which may include:
- Suicide: Most policies contain an exclusion if the insured commits suicide within the first year or two after the policy was in force.
- Acts of War: This would usually apply to a person who is killed either domestically or abroad by an act of war, which would be most common with members of the military. Today, most life insurance policies do not include an act of war exclusion, although it is good to confirm this with your insurer, especially if you are in the military.
- Dangerous Activities: Though less common these days, some life insurance policies contain exclusions for various types of dangerous activities, such as skydiving, cliff diving, rock climbing, racecar driving, and piloting an airplane.
There are no exclusions in life insurance policies that would apply to the COVID-19 outbreak or any other type of global pandemic.
For New Life Insurance Policies, Most Applicants will not be Significantly Impacted by the Coronavirus: According to Business Insider, not a lot is changing with regards to obtaining life insurance in the wake of the COVID-19 pandemic. The application process will be pretty much the same, and prices should not be affected all that much as this outbreak is temporary and will eventually go away and/or a vaccine will be developed for it.
There are a couple instances in which your life insurance application may be affected by this outbreak. First and foremost, if you are in a high-risk category (e.g., elderly or compromised immune system) and you have tested positive for the coronavirus, then your premiums will rise significantly if you are approved for insurance at all. But this would be the case with any other underlying health condition as well. If you have the virus and you are in a low-risk category, you should still be able to get affordable coverage, but it may be best to wait until you have made a full recovery and finished your quarantine period before applying.
Another thing that may impact your life insurance premium is your location and/or travel history. For example, if you live (or have recently lived) in an area like NYC where there has been a major outbreak, then your premiums may be slightly higher even if you have not contracted the virus. The same holds true if you have recently traveled to an area where there are a lot of confirmed cases.
Stay Safe Out There: Regardless of your location, your health and well-being need to be your number one priority, especially during this difficult time we are living in. Follow all of the recommended guidelines; wash your hands regularly, do not touch your hands to your face, practice social distancing, and do not make any unnecessary trips outside your home.
All of that said, the COVID-19 outbreak is a good reminder of how uncertain our futures are. Things can change in an instant, and no one is guaranteed another day on this planet. If you have not protected your loved ones in the event of a worst-case scenario, now is a good time to get a quote on life insurance. Most of the steps can be completed in the comfort of your own home, and if you use an independent insurance agent like us, we can do the shopping for you to find you the insurer that provides the best coverage at the most affordable rates.