Can I Get Life Insurance During the Coronavirus Pandemic?
Among the many moments of contemplation caused by weeks of isolation caused by the pandemic, you may be asking yourself if you should take out life insurance or if your current policy covers death from coronavirus .
Sure, your family can drive you crazy as you all try to occupy a single bubble of personal space indefinitely, but you still want to know that they will be taken care of in the worst case scenario.
I spoke with Nicholas Mancuso, senior operations manager at insurance comparison site Policygenius , about the process of getting or keeping life insurance during the coronavirus pandemic.
Be aware that you are certainly not the only one with questions: Mancuso said there has been a marked increase in interest in life insurance policies at Policygenius, although the company is not tracking whether this is specifically related to coronavirus concerns.
Here’s what you need to know – just keep in mind that we are only talking about term life insurance that covers you for a certain number of years, not any other life insurance product.
Your current life insurance policy covers coronavirus
If you are interested in a new life insurance policy or if you already have insurance coverage, you can be sure of one thing: if you die from the coronavirus, your policy benefits will remain in effect.
“There are exceptions for large-scale hostilities and the like. But diseases and pandemics are not literally excluded from politics, ”said Mancuso. “If you died from the coronavirus, this policy would pay off.”
You can still get a life insurance policy
Life insurance companies usually ask if you have traveled in the past few years and are planning to travel shortly after the policy started because they want to know if any of your remote locations are at high risk from a local outbreak. illness. illness. If this is the case, they may delay finalizing your policy to make sure you are not infected.
This line of questions applies to the coronavirus as well: “Many carriers are introducing exemptions for travel to high-risk areas,” Mancuso said, explaining that Italy, for example, is one of them. “The carriers are likely to put off any offer for you until you’ve spent a lot of time at home and have shown that you have no symptoms.”
Of course, if you currently live anywhere in the US, you are probably in an area with an increased risk of contracting the coronavirus. This potential impact will not prevent you from getting coverage, but you must make sure that you are in good health when you apply.
You have coverage options
Yes, that part of the life insurance application process where someone asks you a bunch of questions about your health and takes a blood sample is still ongoing.
If your policy requires a medical examination, a healthcare professional will visit you at home for a basic medical examination – wearing a mask and gloves, of course. During this visit, you will not be tested for the coronavirus, but the examiner will monitor the symptoms of the coronavirus, and the carriers will also ask you specific questions about the symptoms even before someone is sent to your home.
If you live in an area where any kind of contact is not welcome or you are uncomfortable when someone comes to your home, you can still get life insurance by purchasing a non-medical option or an accelerated underwriting option. There is a health questionnaire, but no personal visit. If you are approved, there is less benefit than you would get from a standard policy: typically $ 500,000 to $ 1 million. With the removal of physical distancing restrictions, you will have the opportunity to add value to your advantage, either by switching to standard policies or by adding additional coverage.
Whichever route you choose, keep in mind that each policy has a contest period, which usually lasts about two years. This means that if you lie on your health questionnaire, the insurance company may think you were fraudulent and stop your family from getting your benefits.
You don’t have to pay extra
If you’re looking into life insurance options right now, you won’t see a surge in premiums due to the coronavirus, Mancuso said. This is because life insurance rates are governed by actuarial tables that assess your risk based on a variety of factors. Insurance companies must register their rate plans with the states in which they do business. Mancuso said that while rates can fluctuate due to factors such as increased life expectancy, demand itself does not play a big role.
If you want an idea of how much you can pay per year for life insurance, ValuePenguin has a detailed guide broken down by age and benefit level. Experts usually recommend getting a policy 10-15 times your annual salary.
Coverage still takes a minute
The life insurance underwriting process usually takes three to eight weeks while the carrier walks you through the application process and determines your level of risk. If you apply for an expedited underwriting, it may take less time.
One change to note during the pandemic is that some insurance companies are dropping what they call conditional coverage – the temporary coverage they offer while you go through the approval process. This means that as long as you get approval during the coronavirus pandemic, you will not have this temporary coverage. You may also need to sign a Good Health Statement, which says that your condition has not changed from the time you first applied for the policy until it is completed and paid for.