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Will My Life Insurance Be Affected By The Pandemic?

Friday, March 11, 2022

Questions about life insurance abound because of the pandemic-related changes and disruptions over the last few years. You may be wondering how COVID-19 affects existing or new life insurance policies. A great deal of misinformation is floating around the Internet. The team at Independent Insurance Associates hopes these answers will help you feel more secure in this uncertain world.  Read on to find out if your life insurance will be affected by the pandemic.

Are You Covered If You Pass Away From COVID-19?

Your current life insurance policy should not be affected by the pandemic. Existing life insurance policies will cover a COVID-19 related death providing your premiums are up to date. As with all policies, the insurance company can deny a claim if you withheld information or gave false answers when you applied for your policy. Nothing about those requirements has changed. Life insurance rules are regulated on the state level. There are currently no changes to the states’ laws regarding death from COVID or related causes. 

Can I Get Life Insurance Coverage During The Pandemic?

The short answer is yes. The longer answer is there may be more delays due to the wait times for an appointment for a physical or proof of a negative COVID test. In the early days of the pandemic, many insurance companies put a hold on new policies mostly to have time to understand the virus. Continued research and available vaccines have gone a long way toward a return to normalcy. Remember that qualifying for a policy is always based on your long-term health assessment. 

life insurance be affected by the pandemic

Does A Positive Test Result Make It Possible To Find Coverage? 

Your new life insurance application could be delayed if you have tested positive for COVID-19. Some companies will have a set amount of time before issuing a policy. The average wait can be three to six months. Other companies may only require a negative test proving that you have fully recovered from the illness. Life insurance costs are rising with these factors, so expect higher rates for new coverage.

Can Insurance Companies Change These Rules?

Long-COVID health concerns are prompting speculation about future coverage for pandemic-related deaths. Right now, this question is more a health insurance dilemma than a life insurance concern. There is the expectation that costs could continue to rise because of the changing conditions of the virus. Research and the development of new drugs to help prevent another pandemic make this less stressful as we move forward. 

Life insurance pandemic-related questions are a hot topic. A quick Google search will give you further reassurance about continued coverage – although, there is a lot of harmful clickbait if you look long enough. Feel free to contact us with any questions you may have about your existing coverage or if you are considering applying for a new policy. You may be asking yourself if you need life insurance at this point in your life. We believe if anyone depends on your income for support, you need life insurance. If the past few years have taught us anything, it is that life can change in an instant. At Independent Insurance Associates, our job is to find you the best coverage at the best price. We encourage you to be proactive and prepared for all your insurance needs.