Life Insurance and Coronavirus

March 31, 2020

  • You are covered if you have an active health insurance policy and your beneficiaries will get the death benefit if you die because of coronavirus.
  • It is better to get a new health insurance policy before you contract the virus.
  • While you can get a health insurance policy after getting infected, things can get more complicated.

Restaurants are now switching to takeout only, and bars are closing, and life insurance companies across the US are fielding a flood of calls from tense consumers.As the new COVID-19 has been spreading fast across the US, many Americans are worried and unsure not only about exposure to the deadly virus and their health as well as the health of their family. They would also like to know how their active life insurance policy, or a policy they are thinking about getting, would help them financially.

The outbreak of the dangerous coronavirus has closed restaurants, schools, sports leagues, theme parks, and pubs, causing Americans to rush out and buy cleaners, sanitizers, soap, and other necessities, such as paper towels and wet wipes. 

Does Your Life Insurance Policy Cover The Coronavirus?

The good news is that you are covered. Most policies cover and adapt even in a pandemic, such as COVID-19.Life insurance has no pandemic or epidemic exclusion.It means that as long as you have an active life insurance policy and continue to pay premiums, your beneficiaries, such as your family, will receive the death benefit if you die from coronavirus or related health complications.

Therefore, if you have an active life insurance policy in place, and you were to die of COVID-19, your family would still receive the payout. This is true even if you had knowingly traveled to an area, such as France, with a known disease outbreak.

You can always take a close look at your insurance policy when in doubt. Or you can have somebody who you rely on to read it for you if you have any type of exception or an unusual clause in the insurance policy itself.

Applying For a Life Insurance Policy

Although the coronavirus is an evolving and lethal pandemic, it should not have an effect your ability to apply for a life insurance policy.However, it is better to get an insurance policy before you get sick.It is better to fill out an application while you are healthy. This is because the insurance company will review your medical records if you wait and contract an illness. The company might hesitate to approve your life insurance policy at the preferred rating.

And you may have to go through an underwriting process if you have any pre-existing conditions, like diabetes.This process can last over a month. And if you travel to a country with the coronavirus, such as China, it can delay your application. This depends on the life insurance company.

Keep in mind that while many life insurance companies in the US have no changes in their application approval because of the current spread of this virus, some insurers can postpone application approval in these cases:

  • You have visited China within the last thirty days
  • You have returned from Wuhan Province recently
  • You have plans to travel to China in the future
  • You have plans to go outside the US in the future

You might not want to spend time in a doctor’s office during a pandemic. However, some insurers require you to undergo a medical exam for approval. If that is a concern, you should shop around for insurers that do not require an exam or look for an insurer that will allow you to conduct the medical test at your house.