Life Insurance After Covid-19: What to Consider

  • COVID-19 has claimed more than 162,000 lives to date in the U.S.
  • If you’re currently infected, most insurers will ask you to wait until you’re full recovered before applying for a life insurance policy.
  • Insurance companies may want to know your travel history and future travel plans when you apply.
  • Life insurance companies might not require in-person physical exams due to social distancing.
  • Some insurers are adjusting their coverage options and offerings.
  • Your premiums may be higher if you purchase life insurance during the pandemic.

More than 5.05 million people in the U.S. have been infected with the coronavirus, and more than 162,000 have died. Because the pandemic is such a serious health threat, it’s understandable if you’re thinking about purchasing life insurance if you’ve tested positive for COVID-19. But will insurers accept your application?

Applying for Life Insurance If You Have the Coronavirus

According to NerdWallet, if you’ve tested positive for COVID-19, most insurance companies will ask you to hold off on applying for coverage until you’ve fully recovered. In fact, due to the life-threatening nature of the virus, you probably won’t even be able to purchase a guaranteed issue policy, which doesn’t require extensive health questions or a medical exam.

Life Insurance Changes to Be Aware Of

The life insurance application process has changed due to the pandemic.

Now, life insurance companies will likely ask you about your recent travel history, as well as your future travel plans. If you have traveled or are going to travel to a COVID-19 hot spot, you’ll pose a greater risk.

In addition, because social distancing requires people to avoid unnecessary contact, medical exams might not be available in your area. For this reason, some insurers now offer a virtual life insurance application process.

Bankrate reports that a number of life insurance companies have changed or plan to change their coverage options. For example, some no longer accept applications for 30-year term life policies, while others have suspended applications from people who are 70 years of age and older.

Last, but certainly not least, some insurance companies are increasing their rates, as the AARP reports. These increased rates are likely to apply more to seniors than to other age groups because they’re more vulnerable to the virus.

Get Independent Life Insurance Advice During the Pandemic

All of these changes shouldn’t deter you from getting life insurance during the pandemic — but when deciding which company to choose, it’s wise to work with an independent life insurance broker like Liberty Financial Group. Because we’re not associated with any specific insurance company, we can give you truly objective advice regarding the best options for your situation. Please contact us to learn more.

Sources

https://www.nerdwallet.com/article/insurance/life-insurance-coronavirus-faq

https://www.bankrate.com/insurance/life-insurance/coronavirus-and-life-insurance/

https://www.aarp.org/money/budgeting-saving/info-2020/insurance-policies-during-coronavirus-faq.html