How Is the Coronavirus Affecting Life Insurance?
As the coronavirus pandemic threatens people's health in almost every community on the planet, it's natural for more people to consider the importance of life insurance in the current situation. Is coverage available for a death caused by COVID-19? Is life insurance becoming more expensive? Should I get life insurance right away?
We at LowCostInsurance investigated these frequently asked questions about life insurance and the coronavirus.
Does life insurance cover COVID-19?
Yes. Unless you already had COVID-19 or recently traveled to an area subject to a travel advisory and did not disclose this when you applied, your policy will cover you if you die as a result of COVID-19. Because life insurance companies cannot change the terms of coverage for active policies, anyone who was previously covered remains so.
Has COVID-19 made it harder to get a new life insurance policy?
If you have been infected with the coronavirus or have recently traveled to a region where there is a large outbreak, getting life insurance may take much longer and be much more expensive. Some insurers have recently stopped selling policies to customers over a certain age. Terms and rates may change as life insurance companies adjust to the new situation.
Will COVID-19 have an impact on life insurance requirements in the long term?
It's still too early to tell for sure. Some recovered patients are said to have sustained long-term lung damage, but doctors will need more time to determine the true long-term impact of the coronavirus. If there are long-term consequences, life insurers may incorporate that information into their underwriting standards, which may affect the cost of COVID-19 survivors' coverage.
According to some researchers, COVID-19 could survive the current pandemic and join the established family of respiratory illnesses that we face every season. The threat of a recurring COVID-19 season may result in higher life insurance costs, depending on how quickly and effectively new treatments and vaccines are developed.
Does the current coronavirus pandemic make it more important to have life insurance?
We don't believe COVID-19 changes the answer to whether you need a life insurance policy. Our advice has always been that life insurance is required for anyone whose death would cause financial hardship for another person.
Anyone who provides care or financial support to family members should have enough life insurance to cover that support for the duration. Married couples, even those without children, can use life insurance to ensure that each spouse can maintain their joint standard of living if the other dies.
If you are not married and have no dependents, life insurance is probably not necessary. However, keep in mind that your situation could change in the near future. If you plan to support a parent in their old age or marry a significant other, those ties may justify obtaining coverage ahead of time.