Coronavirus (covid-19) has had an impact on many financial products, but what about Life Insurance?
The pandemic has certainly given us an unexpected reason to look deeper into our finances, and now is a great time to protect against sudden changes to our circumstances.
What is Life Insurance?
Life Insurance is a policy that is paid to your dependents when you die, either as a lump sum or regular payments. The cover is there to give you peace of mind that your loved ones will be financially secure in the event of your death.
There are several different types of Life Insurance policy available. Policies include ‘whole-of-life-cover’ which pays out irrespective of when you die, to ‘Term Insurance’ that would cover when your dependants are most financially vulnerable, for example, whilst children are in full-time education or during your mortgage term. An insurance advisor will be able to give you expert advice before choosing the right cover for your family’s needs.
Can I still buy Life Insurance during the Coronavirus (covid-19) pandemic?
It’s said that the British Life Insurance industry paid out £90million for covid-19 related deaths in the first three months of the pandemic, so how will that affect existing and new policies?
Life Insurance is still available during the pandemic, but you may find some of the questions that check your eligibility for cover have changed and they may include a screening for covid-19.
You may be asked the following –
- Have you had COVID-19 symptoms in the last month?
- Have you had to self-isolate in the last month
- Have you tested positive for COVID-19 in the last month?
- Have you had confirmed contact with someone with COVID-19 in the last month?
Answering ‘yes’ to any of the first three questions could cause the policy to be put on hold until symptom-free for some time. This will vary depending on the underwriter, and the severity of the illness if you have had covid-19.
Can my dependants claim on my Life Insurance policy if I die from coronavirus (covid-19)?
As it stands Life Insurance policies have been mostly unaffected by the covid-19 coronavirus and providing cover wasn’t previously excluded for a pandemic, existing policies are being paid out as usual and subject to the usual claims process.
New cover is still available without covid-19 exclusions but you should check this with the provider as this could change like most things with the pandemic.