Does Life Insurance Cover Deaths From Coronavirus?

June 26, 2020 12:10 newlambertagency

The world is facing a crisis. And naturally, several rules have been changed. Our priorities are rearranged and our focus has been shifted to all things ‘essential’. It is reasonable to assume that a global health crisis like the coronavirus would have some impact on your life insurance coverage policy acceptance and premiums.

As the virus spread to all corners of the world, the death toll has risen significantly. So, now the question arises, will a life insurance cover coronavirus? Also, will you be able to get a life insurance policy after contracting the virus?

Read on to find out…

Existing life insurance

Let’s consider an existing life insurance policy that the policy-holder has had before the pandemic hit. If that individual passes away because of COVID-19, they are eligible for the death benefit. In such a case, the beneficiary of the policy-holder will receive the sum assured as the death benefit.

Furthermore, even though some life insurance policies exclude specific causes of death, death due to coronavirus is without a doubt applicable to the death benefit.

Death benefit includes the agreed amount of money, called the sum assured, which is paid by the insurance provider upon the death of the policyholder to the beneficiary.

New life insurance

Now let’s consider a new policy taken amidst the crisis. If you have considered buying life insurance, then you must bear in mind that your insurance premium is determined based on your health and medical history, and purchasing it amidst this global health crisis is bound to have an impact on both the acceptance of your policy application and the cost of its premium.

But there’s a catch here. If you have already contracted the virus and then decide to take up life insurance, your life insurance application will probably get rejected by the insurance provider.

However, if you disclose your medical history precisely at the time of your purchase, wherein you are not infected with coronavirus, then your application will most definitely be accepted. This allows your death benefit to be payable to your beneficiary in the future even if you pass away due to coronavirus infection.

Hence you must be vigilant and upfront when taking up a new policy.

You must bear in mind that even though COVID-19 is covered as a critical illness, benefits will be paid out as per your policy’s terms and conditions only. For example, a policy may state that the critical illness benefit will not be applicable if the illness is caused by any of the listed conditions, and death has occurred within the 30 days of its diagnosis.

It all depends on the kind of policy you take and the kind of provider that you decide to put your faith and money in.

And as for people who are wondering if they should buy life insurance during a pandemic like COVID-19, the short and easy answer to it is yes. In fact, one must not wait for a global health crisis to instate to take necessary financial protection for you and your family. A pandemic doesn’t mean end times. And if your life insurance cover COVID19, you save yourself from unnecessary panic and worry that is often accompanied by such a crisis.