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Life Insurance and Coronavirus. Everything You Need to Know!


Life Insurance and Coronavirus.

During trying times like these, it’s not all that uncommon for folks to begin to wonder what would happen to their loved ones in the event that they passed away prematurely.

Which is why…

We wanted to take a moment and discuss some of the most common questions we are being asked by our current clients right now about this recent pandemic and how different life insurance companies are addressing the current outbreak of COVID 19.

In this article, we will address the following questions:

  • Will my existing life insurance policy provide coverage to my family if I contract the Coronavirus and die?
  • Can I qualify for a traditional life insurance policy if I have tested positive for COVID 19?
  • What kind of questions will the insurance companies likely ask me?
  • What kind of rate can I qualify for?
  • What can I do to improve my chances of qualifying for the “best” life insurance policy?

So, without further ado, let’s dive right in.

Will my existing life insurance policy provide coverage to my family if I contract the Coronavirus and die?

First thing first, if you currently own a traditional life insurance policy (vs. an Accidental Life Insurance Policy) and that policy is inforce, it will provide coverage to you if you die from the Coronavirus. In fact, should you die from the COVID 19, your death (while tragic) would be treated exactly like someone who died from any number of natural causes:

Or just the regular old garden variety version of the flu, which typically kills tens of thousands each and every year.

So…

If your worried that there may be some kind of “exclusion” to your current life policy that would exempt you from being covered, chances are you really don’t have all that much to worry about.

That said, however…

It’s always a good idea to read through your current life insurance policy so that you fully understand how it does work and let your beneficiaries know of its existence and where they can find it in the event that you do pass away for any reason! 

Now that that’s taken care of…

Let’s move on to some of the more “tricky” questions regarding how life insurance companies are choosing to take on new clients within this “pandemic” environment.

Can I qualify for a traditional life insurance policy if I have tested positive for COVID 19?

What you’re going to find is that most life insurance companies are going to be a bit nervous about approving anyone who has tested positive for COVID 19. And because of the transmission rate of this disease, this “nervousness” will also extend to anyone who has a family member or household member that has also tested positive for this disease.

In cases like these…

What will usually happen is that most top-rated life insurance companies will choose to POSTPONE one’s life insurance application until they have tested NEGATIVE for the virus on back to back tests.

The only problem is…

That there are a variety of different tests being used today with varying degrees of accuracy. As a result, many life insurance companies have begun to assume different protocols when determining exactly when someone who has tested positive for COVID 19 can and will be able to qualify for a traditional life insurance policy.

This is why…

You’ll want to be completely honest and upfront with your insurance advisor when applying for coverage so that they can inform you immediately about the current rules being used, which will hopefully guide you to the “right” life insurance company right away. This way, you won’t be POSTPONED or DENIED when you might otherwise have been able to qualify for coverage.

What kind of questions will the insurance companies likely ask me?

Typical questions you’ll likely be asked may include:

  • When did you test positive for COVID 19?
  • Do you know how you contracted the virus?
  • What kind of symptoms did you experience?
  • Did you ever need to go to the hospital for treatment?
  • Did you require oxygen treatments?
  • Did you require the use of a respirator?
  • Has anyone else in your household contracted the Coronavirus?
  • Do you suffer from any lingering effect or diminished lung capacity due to your infection?
  • Have you been diagnosed with any other previous medical conditions?
  • Have you ever been diagnosed with any respiratory illnesses such as:
  • In the past 12 months, have you used any tobacco or nicotine products?
  • Are you currently working now?
  • In the past 12 months, have you applied for or received any form of disability benefits?
  • When was the last time you received a COVID 19 test?
  • How many times have you tested negative for COVID 19 since your initial exposure?
  • Have you been tested for COVID 19 anti-bodies or antigens?  
    • If so, what were your results?
    • Where were those tests administered?

With these answers in hand we can now begin to gain a better understanding of what “kind” of life insurance policy you may be able to qualify for as well as what kind of “rate” you may be able to qualify for as well.

 What kind of rate can I qualify for?

As on can see, there are a lot of factors that can come into play when trying to determine what kind of “rate” an individual might be able to qualify for after testing positive and/or being diagnosed with COVID 19.

This is why…

It’s pretty much impossible to know for sure that “kind” of rate you may qualify for without first speaking with you directly. That said, however, there are some “trends” that we have begun to see that seem to how true which we’ll now share with you so that you may gain some idea about what kind or “rate” you may be able to qualify for.

For example…

If you are currently treating your COVID 19 symptoms or you have just recently tested positive for COVID 19, most (if not all) life insurance companies will want to make sure that you make a full recovery (and everyone in your immediate household makes a full recovery) before they will be willing to proceed with your application.

In cases like these…

What will most likely happen is that your application will be postponed for several weeks until it is clear that you no longer suffer from COVID 19 and that you don’t suffer from any “lingering” complications from your disease. Insurance companies will presumably want to see documentation that you now currently test negative for the disease.

From there…

Assuming that you didn’t develop any serious complications due to your infection and you don’t suffer from any serious pre-existing medical conditions, it would be reasonable to assume that whatever rate you would have been able to qualify for before your exposure ought to be the same rate that you would be able to qualify for after your exposure.

In cases like these…

Most life insurance companies will be willing to move forward with your application provided that you have tested negative for COVID 19 at least once (probably twice) and nobody in your immediate household is currently ill.

As for those…

Who tested positive and experienced many of the severe and life-threatening symptoms most of us fear from this disease, what you’re likely going to find is that you may still be able to qualify for coverage, only now your application is likely to become much more complicated.  

Complicated because…

In cases like these a full review of your medical records will likely be ordered/requested, and it’s possible that you may need to remain “COVID-free” for a longer period of time before an insurance company will be willing to move forward with your application

Now, this may…

Not always be the case because things seem to be changing on an almost daily basis, but for now, this seems to be what is happening across most insurance companies. This leads us to the last topic that we want to take a moment and discuss with you, which is…

 What can I do to improve my chances of purchasing the “right” life insurance policy for me?

In our experiences here at IBUSA, we’ve found that usually, the “best” approach in helping someone find the “best” life insurance policy for them is to first:

  • Fully understand what an individual is trying to achieve by purchasing their life insurance policy.
    • Are you looking to:
      • Cover the cost of a mortgage?
      • Replace lost wages?
      • Protect a child or spouse?
      • Or just cover one’s final expenses?
  • Then provide one with plenty of options to choose from so that you’re not limited to just one or two different options.

This is why…

We here at IBUSA choose to work with so many different life insurance companies so that when it comes time to help you decide “which” life insurance company is going to be the best for you, we don’t have to apply a…

“One Size Fits All”

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