With COVID-19 cases surging and the pandemic still ongoing, it’s natural to wonder about how it might affect life insurance policies. More people have signed up for life insurance since the start of the pandemic, and it has become clearer now more than ever how important it is to keep our families safe, healthy, and financially protected. Here is our guide to the most common questions about life insurance and COVID-19:
Do life insurance policies cover COVID-19?
Yes, life insurance companies will cover COVID-19. Passing away as a result of the virus means your beneficiaries will be paid out the amount of your plan, regardless of whether you purchased your life insurance plan before or after the COVID-19 pandemic started.
Can you buy life insurance if you have COVID-19?
Life insurance companies in most states can ask questions about COVID-19 during the underwriting phase. These questions include whether you have received a positive test result, whether you have been advised to self-isolate, whether you have had any symptoms, and whether you have been in contact with anyone with COVID-19.
Answering yes to these types of questions means you will likely have your coverage postponed for 30 or more days from a negative test result, which is the amount of time it would generally take the virus to resolve itself if you do have it. Because of this, you can’t simply buy a plan after knowing you already have COVID-19, but you can buy a plan in preparation for the possibility that you will in the future.
If you are experiencing a serious case of COVID-19 that involves hospitalization, your plan could be postponed even longer than the 30 days. However, failure to disclose this type of information on your life insurance application means it can be rejected outright, and in some cases you could be liable for fraud.
Will life insurance companies sell to people with pre-existing conditions?
It has always been a struggle for people with certain pre-existing conditions to find life insurance coverage, even if they are managing them by living a healthy lifestyle. At Health IQ we are committed to helping people with pre-existing conditions that are under control, get the best possible deal on their life insurance plans.
However, certain criteria for pre-existing conditions have changed in light of COVID-19. People with conditions like asthma, other respiratory conditions, diabetes, or heart disease are likely to have more trouble getting coverage than before because of how unpredictable the effects of the virus are on these conditions.
Just as before, it is vital to prove you have your condition as under control as possible, and getting a medical exam with blood work to prove you are taking care of yourself can go a long way. However, if you are over age 50 and have a pre-existing condition that is affected by COVID-19 it may be more of a challenge to get covered.
Is age considered a pre-existing condition for COVID-19 by life insurance companies?
It depends on the company, but in many cases, yes. Age has always been a factor in underwriting, but some companies have stopped accepting clients over certain ages like 70 or 80. It may be hard for someone as young as 50 to get a policy with a pre-existing condition.
However, there may still be some options left to some older customers depending on health history. As always, getting a medical exam that proves you’re in good health as part of the underwriting process can help.