Life Insurance During COVID-19: What You Need to Know

Life Insurance During COVID-19: What You Need to Know
Fiona Staff10/22/2020

The COVID-19 pandemic has led to uncertainty in several aspects of everyday American life, including thinking about finances and mortality in the short- and long-term. One area where people may be curious or concerned about how the outbreak has affected matters is life insurance. Considering how infectious the coronavirus is and how it impacts different age demographics, there are a lot of questions people may have that require a variety of answers.

Does Life Insurance Cover COVID-19?

Before we get into the wide-ranging effects the pandemic has on applying for a life insurance policy, it’s important to know that in most instances, coverage will remain intact for a death caused by COVID-19. Insurers cannot alter policies in the wake of a pandemic, however, the same typical factors still apply when determining if a death benefit is paid out to a beneficiary. 

So even if an insured passes away due to having COVID-19, the claim can still be denied if: they provided inaccurate information and death occurs within the first two years of policy (e.g., failed to disclose a preexisting condition and that preexisting condition was a factor in the insured’s death) or if the insured failed to make monthly payments. In addition, policyholders who only have accidental death coverage will not be eligible if their death is caused by COVID-19.

Can You Apply For Life Insurance During the Pandemic? 

The short answer is yes. Demand and awareness for life insurance have increased during the pandemic, but the question has become — how willing are insurance carriers to underwrite policies amid an unprecedented public health crisis?

For those who have been diagnosed with COVID-19 and are still being treated for the disease, most insurance carriers are asking them to wait until they’ve fully recovered before applying for a policy. Some carriers have suspended applications for certain policies, while others are turning down applications (or placing them in waiting periods) for people who have traveled to certain regions or have certain preexisting health conditions that are more vulnerable to the coronavirus. 

If you are healthy and eligible to apply for a life insurance policy with a given carrier, now may be an ideal time to look into coverage, due to rates mostly staying the same during this time of economic and public health uncertainty. 

Interested in life insurance, but don’t know where to start? With Fiona & LeapLife, you can get matched with personalized life insurance policy quotes based on your needs. Here’s how: 

Another important factor in applying for life insurance during the pandemic is the process of undergoing a mandatory health exam. However, there are insurance carriers who provide a completely virtual application process that does not involve an in-person exam. Whether through an online application, phone interview, and/or review of online medical databases, it’s important to find out what options are available to streamline the application approval process. 

What If You Have Problems Making Payments? 

For those who have a policy or are pursuing one, there is also the concern of keeping up with monthly premium payments during a time of economic uneasiness. Luckily, most carriers are providing relief options for policyholders during the pandemic. Whether it’s extended grace periods, waiver of late fees/penalties, or flexible payment plans, it's important to review the amended terms and conditions of different carriers in light of the changing landscape. 

Bottom Line

While COVID-19 has complicated many matters, life insurance doesn't need to be one of them. In times of both economic and public health unpredictability, the need for comprehensive life insurance coverage cannot be understated. Luckily, there are many carriers out there willing to work with applicants. With Fiona & LeapLife, you can compare personalized life insurance policy quotes from top providers all from one convenient site. 

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