5 Things to Know about Life Insurance and the Coronavirus
With the global spread of the coronavirus (COVID-19), it’s natural to look for additional ways to protect your loved ones. And for many people, that may include purchasing life insurance. However, the uncertainty of the illness and the economy can make it seem too complicated to get the coverage your family needs. Below, we answer common questions regarding life insurance and COVID-19 that may help you make a more informed decision.
1. Are term life insurance policies being issued during the pandemic?
Yes. Life insurance companies are still issuing life insurance policies for most healthy people. We’re treating the COVID-19 outbreak the same way we would treat any other illness or travel advisory. If you have been diagnosed with COVID-19 or recently traveled to a high-risk country, your life insurance application may be delayed or require additional testing.
2. Does life insurance cover deaths from COVID-19?
Yes, life insurance will pay a claim for coronavirus-related death in almost all cases. Keep in mind that there may be exceptions, especially if false information is provided on the application about foreign travel or a COVID-19 diagnosis.
3. What happens if I have a life insurance policy then get exposed to or diagnosed with COVID-19?
If you already have a policy in force, life insurance companies cannot penalize you for getting ill or for traveling to an area with an outbreak of COVID-19.
4. Have term life insurance costs changed due to COVID-19?
COVID-19 has not had an impact on life expectancies or what we are charging for term life insurance yet. Your premium is based on you. Your age, health, sex, and the amount and duration of coverage are what determines how much you will pay. Once your term life insurance policy is purchased, the premiums are locked in for the duration of the policy and cannot change.
5. Is there an affordable way to get the protection I need?
Budgets are top-of-mind for most people right now, but if you decide life insurance is right for you, you may want to consider term life insurance. It’s the most affordable type of life insurance and costs less than many people think.
Ref. https://blog.nationwide.com/five-important-things-to-know-about-life-insurance-during-the-pandemic/
