In a time where tragedies have become more and more common, life insurance companies have adjusted to these new changes. Policies have generally remained the same, but there are some key differences worth discussing.
Did COVID-19 affect life insurance premiums?
For the most part, life insurance premiums have remained the same since the start of the COVID-19 pandemic. However, there is a chance that new life insurance customers with prior health issues who have also suffered from COVID-19 might encounter higher premiums as a result.
How has COVID-19 changed obtaining life insurance coverage?
COVID-19 has forced some life insurance companies entirely online, while others have decided to stick with a hybrid model. Either way, most initial meetings with life insurance agents these days will take place first online, and many customers are seeking life insurance quotes completely online.
If a potential policy buyer needs to have a physical exam before obtaining their coverage, they will still need to undergo this exam in person. That being said, most life insurance companies will only require a physical if a customer wishes to pay for a higher amount of coverage, or if there's an irregularity on the application.
Will COVID-19 change life insurance payouts?
Suffering or passing away because of Covid-19 should not change a life insurance payout in any way, especially if the policy was purchased at least two years ago while the client was healthy.
The only issue that could arise is if an individual fraudulently obtained the policy too close to the event of their passing, or if a customer took out an "accidental death only" policy, which would not provide a payout in the event of a terminal illness.
If someone passes away 1-2 years after they purchase life insurance coverage, their life insurance company will request a copy of their medical records to make sure they reported all pre-existing health issues. If they didn't, the insurer could potentially deny the claim.
Is it possible to obtain life insurance coverage after contracting COVID-19?
If a customer currently has COVID-19, most companies will not let them take out a policy until they have fully recovered from the virus. The recovery can be anywhere from 30 days to 90 days, and every company will have different specifics for their policies.
Otherwise, recovering from COVID-19 should not limit anyone's ability to obtain life insurance coverage in any way. Once they have fully healed, they will usually only have to note on their life insurance application that they have had Covid-19 in the past.
Does vaccination status affect life insurance coverage?
As of right now, life insurance companies will not deny a customer coverage because they are unvaccinated. Moreover, an unvaccinated customer cannot be denied an insurance payout if they pass away from COVID-19.