Coronavirus

As the spread of Coronavirus (Covid-19) continues, we wanted to clarify any concerns you may have regarding how the virus will affect you and your life insurance policy.

Coronavirus help & support:

Does life insurance cover Coronavirus

Claims made on existing policies due to coronavirus will be paid out as per the standard terms and conditions of your policy.

This is because Coronavirus is a new illness and won’t have been made an exclusion when you took your policy out (as it was not pre-existing).

Please note that insurers can add a contestability clause to your policy. This means they can delay a pay out while they look into your cause of death.

If you’ve recently taken out a policy and pass away due to Coronavirus it’s likely insurers will need to investigate further to determine whether the illness was pre-existing or not.

In rare instances, insurers sometimes add a ‘pandemic’ exclusion into policies. In which case, Coronavirus would not be covered.

To find out what your policy covers you for, it’s best to check out your policy documents.

Will Coronavirus affect my existing life insurance policy?

If you have an active life insurance policy it’s unlikely it’ll be affected by Coronavirus.

This means a valid claim can be made by your loved ones if you pass away from Coronavirus.

It will only not be valid if there’s a pandemic exclusion written into your policy (not all policies will have this exclusion).

By looking through your policy documents you can find out what you are (and what you aren’t) covered for.

Can I make a claim for Coronavirus?

As discussed above, you can make a claim for coronavirus on an existing life insurance policy and a payment will be made per the terms and conditions for your policy.

If you’ve only recently taken out a policy and a claim is made due to Coronavirus, the insurer may bring in the contestability clause – where they can look further into the death to see if Covid-19 was pre-existing at the time of taking out the policy.

You may also not be able to make a claim if a pandemic exclusion was written into your policy.

Will Coronavirus impact my chances of securing cover?

It’s still possible to obtain life cover during this uncertain time.

However, since the outbreak of coronavirus, some (but not all) insurers have changed their application process to gain a greater understanding of the risk that you pose.

This includes adding new questions to their application process.

If you are found to have any Coronavirus symptoms or have tested positive for Coronavirus, it’s likely that your application will be postponed until you have made a recovery.

If you’re healthy and currently have no Coronavirus symptoms it’s likely that your application will be accepted with no issues.

Will there be an exclusion for Coronavirus in my policy?

Insurers aren’t currently adding Coronavirus as an exclusion to new policies.

This means if you pass away due to Coronavirus your loved ones will be able to make a claim.

Please note: each insurer has a different application process and therefore not all providers will have changed their processes due to Coronavirus.

How will Coronavirus affect the underwriting process?

Some insurers may have made adaptions to their underwriting process during this time.

You may now be asked if you are suffering from any Coronavirus symptoms (persistent cough, high temperature and shortness of breath) or if you have tested positive for Coronavirus.

You may also be asked if you’ve been advised to isolate, are currently isolating or have had recent contact with anyone who has tested positive for/has a suspected case of Coronavirus.

If you’ve recently travelled this could also have an impact.

If you’ve recently returned from any high-risk countries (such as China or Italian towns), your policy may be postponed until further notice.

Please note: each insurer is different and while this may be the case with some insurers it may not be true of all insurers.

Non-disclosure

It may seem appealing to not disclose any symptoms you are experiencing or any travel you have recently undergone in order to obtain life insurance.

However, if you were to pass away and it was found that you hadn’t been truthful about your health and well-being at the time of application, it can lead to your claim becoming void and no pay out being made to your loved ones.

Will critical illness cover Coronavirus?

As Coronavirus (Covid-19) is a new strand of illness, it won’t be listed as a defined illness in a critical illness policy.

Therefore, if you become unwell with Coronavirus you won’t be able to make a critical illness claim.

However, if you’re ill with Coronavirus and, as a result, you develop an illness that is listed on your policy (such heart or lung failure) it’s likely that you’ll be able to make a claim for this.

Terminal illness

Coronavirus isn’t currently classed as a terminal illness and therefore, you won’t be able to make a terminal illness claim if you become ill with the virus.

Will my premiums increase due to coronavirus?

What happens if I miss a payment?

During these difficult times, you may feel you need to miss a payment.

If you miss a payment many companies often have a period of grace before your policy lapses.

If you need to miss a payment due to Coronavirus (if you’re ill or are out of work) it’s important that you contact your insurer to let them know of your situation.

Equally, if you’re planning on cancelling your policy due to not being able to make payments, it’s important to contact your insurer as they can talk you through your options and may allow arrangements to be made.

Each insurance company will have a different policy regarding missed payments and during these unprecedented times, some insurers are even more understanding that people may be in financial difficulty.

Waiver of premiums

A waiver of premiums will relieve you of the financial obligation to pay your premiums (for a specified period of time) if you become seriously ill and unable to pay your premiums.

If you took out a policy with a waiver of premiums you may be able to use this during this time.

It’s always best to contact your provider as they’ll be able to explain your options in detail.