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During these uncertain times, you may have questions about how Coronavirus will impact your ability to secure life cover.
At Reassured, we want to clarify any questions you may have regarding how the virus will affect you and your life insurance policy.
Disclaimer: The situation regarding Coronavirus is changing every day. This information is correct as of 14/03/2022.
Claims made due to coronavirus on existing policies which were taken out before the pandemic impact in March 2020 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 took out your policy after March 2020 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 and whether any coronavirus or pandemic related exclusions were written into your policy.
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.
Please note, we've also compiled a Coronavirus and funeral plans FAQs »
If you have an active life insurance policy that was taken out before March 2020, 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.
As discussed above, you can make a claim for Coronavirus on an existing life insurance policy and a pay out will be made as per the terms and conditions of 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.
It’s still possible to obtain life cover during this uncertain time.
However, since the outbreak of coronavirus, most insurers have made some changes to their application process.
This includes adding new Coronavirus specific questions, such as:
If you answer yes to any of these questions, it’s likely your application will be postponed until you have made a full recovery.
If you’re healthy and currently have no Coronavirus symptoms, it’s likely that your application will be accepted with no issues.
Yes, it’s still possible to secure cover if you’ve tested positive for Coronavirus, however you may have to undergo a waiting period before your cover can commence.
If you declare that you have tested positive for Coronavirus at the point of application, it’s likely your application will be postponed until you have made a full recovery.
Once you have made a full recovery and are able to resume your normal daily activities, you’ll be able to take out cover.
It’s unlikely that you’ll experience loaded premiums if you’ve made a full recovery, meaning you should still be able to take out cover on standard terms.
If you are taking out a new policy, most 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. However, this will vary between providers and some insurers may include exclusions.
Therefore, it is best to compare quotes and policies if you are taking out new cover.
Some insurers may have made adaptations 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 and you may be asked questions about where you travelled to.
If you’ve travelled from a high-risk country, 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.
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.
Not sure of how critical illness and terminal illness cover differs? Read our dedicated terminal vs critical illness cover article.
New policy premiums are unlikely to be affected by the presence of the virus. The exception is if you have developed a pre-existing medical condition as a result of the virus. This may result in higher premiums or exclusions being written into your policy.
If you’ve an existing policy your monthly premium amount would have been agreed when you took your policy out and will be fixed throughout the course of your policy.
New policy premiums are unlikely to be affected by the presence of the virus.
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.
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