COVID Life Insurance
After several months of quarantine, the life insurance industry finds itself in a similar situation to many other businesses—stuck in the world of uncertainty. Many experts are trying to determine the effects that COVID-19 will have on the industry when “the smoke clears”. It is certain that we will see an impact, but we have yet to determine the manner and severity.
Recently, our clients have asked, “Does my existing life insurance policy cover death due to the coronavirus?” Rest assured, in almost all cases the insured is covered in this situation. The only exception would be a situation where the insured had made an application during the pandemic and knowingly had the COVID-19 virus at the time of application.
Currently, clients feel the need for life insurance more than ever. Fortunately, life insurance companies will still take applications in most cases. We will continue to see changes in the submission of these applications as some insurance companies tighten underwriting restrictions to help protect themselves from the ongoing pandemic. Delays may come from the process itself. In some cases, insurers could find it difficult to attain medical records due to staffing issues. In other instances, the individuals performing the scheduled physical have been quarantined and some clients do not want risk potential exposure in a face-to-face physical. Many companies require applicants to complete a statement of good health after the application process and before putting the policy in force. Some carriers restrict term lengths, and some adjust age restrictions. Traveling to locations most severely affected by the virus can delay the process as well. Even though concerns regarding the pandemic remain ever-present, insurers are still writing life insurance.
So how does life insurance change post COVID?
The specifics remain to be seen. Many experts predict the possibility that declining interest rates will affect the company’s margin on certain products. Premiums could increase to offset the losses on some current policy contracts. Some think that companies could further tighten underwriting requirements. But remember, these are just speculations at this point. The biggest certainty is uncertainty, and there will be changes moving forward.
The solution?
Act Now! Rates have not changed yet, and insurers are still writing insurance. Your family is your greatest asset. They will always need protection. You won’t find a better time to review your current situation and the needs you’ll have moving forward. Luckily, we have many of the industry’s most financially secure markets at our disposal. That will become increasingly important as these companies try to recover from this economic downturn.
Please give us a call and let us help you today!
