Published on, Tuesday 13 October 2020 News
Life Assurance and COVID19 - am I covered?
It looks like we will all be living with the virus for some time yet. At Louvre Insurance Distribution, clients have been asking "does my existing policy cover COVID19?" and "can I get new life insurance to cover COVID19 today?". Hoping you find it useful, we share our answers.
We have all read stories in the media about COVID’s impact on insurance. For example, many companies who believed that their business interruption insurance covered COVID have been disappointed when making a claim. Clients have been asking Louvre Insurance Distribution “does my existing life insurance cover COVID 19?” and “can I get a new life insurance to cover COVID 19 today?”. Hoping you find it useful, we share our answers.
Does my existing life insurance cover COVID 19?
Generally, yes, life insurance will pay unless there is a specific corona virus or pandemic exclusion. If you want to be sure, check your policy conditions, especially if you have been asked to accept new ones in the last six months.
Can I get a new policy to cover COVID 19 today?
Yes but take care - life insurers have not had enough time or claims experience to factor COVID 19 into their mortality experience and thus pricing models, so some are rushing to insert exclusions. Make sure the policy you have been proposed does not have one.
Also, consider that your existing life insurance contracts without COVID 19 exclusions are valuable. Check existing policies to see if you are able to extend, add or convert. For example:
- Term assurance policies which have an extension option at expiry date - consider exercising the option as typically the contract terms and conditions will remain unaltered.
- Investment based insurance products often feature the possibility to add life cover to existing contracts – the same comment as above.
- Term assurance policies may offer the option to convert to whole of life with limited or no further medical evidence required.
Looking forward to a vaccine and in the meantime keep well.