Influence of COVID-19 on Life Insurance Policy

If you have already got a life insurance policy, you don't need to worry! Your policy will not change automatically; your payout is not dependent on whether you have been vaccinated or not, had COVID-19 or not, or anything similar.

The real problem arises when other coronavirus-related things occur, such as job loss, loss of income etc.

Some insurance companies have adapted and understand that this is a unique time we live in and that these are unforeseen circumstances no one could have predicted, and to help you cope with these problems; they might want to offer you a payment holiday for up to three months before they void your policy. Check with your agent or insurance provider if you qualify for it. 

If you have got add-ons attached to your life insurance policy, you may want to check if your insurance needs have changed during this period of time. Most insurance companies will waive any normal fees and other charges if you switch or change your insurance policy at this time.

Do You Need to Inform Your Insurance Provider if You Tested Positive for Coronavirus?

1. If you already have an active policy: No.
   
   
2. If you want to choose a new policy: the application form may include specific questions about whether you are currently suffering from coronavirus symptoms or have recently been tested – and if so, you may not receive a new insurance policy and may need to wait till you recover, so you can reapply.

Do My Beneficiaries Get a Payout in Case I Pass Away From Complications With COVID-19?

Yes. If you have an existing policy in effect and you have truthfully answered the health questions on your application, your insurance company will pay your beneficiaries if you die of COVID-19 during the term of the policy – just as they would if you would die by any other natural cause.

If anything, COVID-19 has proven how important life insurance is in these unexpected circumstances. It can provide peace of mind and be a lifesaver for your loved ones if you are no longer there to help them.

This is important if you have significant financial obligations and dependents to whom the debt will be passed. 

Ask yourself if the people you will leave behind would be able to financially cope if you could no longer support them. If you think this might be difficult or that they would be forced to adapt their lifestyle to the point of making them uncomfortable, then life insurance is likely something you might want to consider.

An advice from Genius James

Remember to change your policy back to something that will suit your needs when we return to more normal times.