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

Life insurance pandemic questions? Can you buy a life insurance policy during the COVID-19 pandemic? You’ve come to the right place whether you have a policy or are potentially interested in buying one soon. Life Insurance and COVID-19 does raise some important points to understand. Read on to get the full scoop.

Does Life Insurance Cover Coronavirus?

The short answer is Yes.

For other people considering financial protection, you might be wondering “does life insurance cover me during the pandemic if I take out a new policy?”

The following post will detail some of the issues you should understand regarding the Coronavirus and Life Insurance.

For those with questions surrounding the pandemic, read on. We address many of those related questions below.

Life Insurance and COVID Vaccine Rumors

I’d like to start with this topic first. Why? Back in late February of 2021 some incorrect information was posted on Facebook. The Facebook post by a non professional indicated that life insurance would not pay out benefits if death occurred after receiving the COVID-19 vaccine. This is/was absolutely a false claim.

What happened to cause the rumor?

The original poster of the misinformation had spoken to customer service with their life insurance company. This individual was told the vaccine was “experimental” and therefore no claim would be paid out if death resulted. COVID-19 vaccines are all partially FDA approved prior to being administered to the public. While it is understandable to feel like a “lab rat”, full FDA approval is a slow process.

The current vaccines are approved and recommended by the CDC because it works to reduce the chance of serious side effects or death. Is it perfect…no. When 100’s of millions of people are taking the same medication, there are going to be some problems, right? With that said, full FDA approval takes time folks. The wheels turn slow.

While the “false claim” posted on Facebook was later removed, the problem festered, creating a lot of rumors. Eventually, the insurance company whom the original Facebook poster reacted to, identified this communication as incorrect. Trouble is, the rumor mill had started and it was spreading all over social media.

Whether the poster of the misinformation was given feedback from an inexperienced, possibly personally biased customer service representative or simply incorrectly interpreted, the outcome was bad information, either way.

The problem moves beyond Facebook…

To top this all off, the misinformation posted was “shared” on multiple other social media platforms creating a false narrative about life insurance companies and COVID-19 cases.

Life insurance companies know more death will occur when people are not fully vaccinated. The scientic data of multimillions proves this. Not being immunized actually increases risk of to the life insurance company which directly results in HIGHER claims. Why would any insurer deny protection for having the COVID-19 shot? It is statistically in their best interest for their applicants and policyowners. Multi millions of people have now received the “COVID-19 vaccine” and the death rate has dropped dramatically, particularly amongst seniors. All life insurance companies want to hang onto money as long as possible. They will continue to encourage anything which ensures your longevity.

UPDATE: As of August 23, 2021, the Pfizer vaccine for COVID-19 has received full FDA approval.

In summary, just ignore social media postings from non insurance professionals regarding life or health insurance. Most people are just not qualified to speak to the subject.

Buying Life Insurance While COVID-19 Positive

Ladies and gentleman, there may be a delay in applying for term of whole life insurance if you have a COVID positive test result or a medical professional has advised you should be tested. The key to purchasing life insurance is to buy before or following a clearance from your doctor. It will not prevent you from obtaining life insurance coverage.

Typical delays to application are 30 days after contracting the illness if the carrier asks a COVID specific question in their application. Many insurance companies want to make sure the insured indivdual has recovered and if there are any lingering side effects of the illness. This will vary from company to company. Some carriers do not ask about this illness specifically.

We can help you find the right company and life insurance to take care of your family. To get yourself started on either term life insurance or final expense whole life insurance get an instant quote from all the top carriers.

It is important to understand that restrictions on certain demographic areas may be imposed by life insurance companies as cases spike up. Insurers are adjusting to manage risk on life insurance applications. Others have adjusted their underwriting standards for those people with preexisting conditions like Asthma or heart/circulatory issues.

This cannot be stressed enough with COVID-19…

It is important to work with a top notch independent professional who knows the ins and outs of the top life insurance companies. Having a professional that knows the carriers who can accept health conditions combined with the COVID-19 pandemic has become a key in finding and obtaining affordable coverage.

Life Insurance Policies and COVID Death Claims

We have all heard of or know people who have died from COVID. Maybe it was a loved one or a close friendship. Having complications from another health condition such as diabetes, COPD or a heart issue etc has taken the life of many, many people. Preexisting conditions seem to be one the highest risk factors with contracting COVID 19 in combination with age and physical fitness. Yes, there have and will be plenty more life insurance claims made to all the carriers over this illness. The key to take home here…claims will be paid out the same whether the insured’s death was due to COVID or a heart attack. Both are natural causes of death.

One thing would inhibit a death claim on a paid to date life insurance policy. That is dishonesty at the time of application. Honesty to all questions on a life insurance application is vital. This applies to any medical condition you are asked about.

Life insurance policies are legal and binding contracts. Unlike an auto or homeowners policy, life insurance is binding to the insurer as long as premiums are paid and the insured answered all questions truthfully to the best of their knowledge.

Am I Required to Have the COVID Vaccine To Apply For Life Insurance?

No.

Could they discriminate at some point in the future? I don’t see that happening at this point, but insurance companies are allowed to discriminate based on perceived risk. That is why you see health questions on a life insurance or health insurance application.

We do not expect to see insurers any shot to purchase life insurance. However, some companies do ask specific questions regarding COVID you must be able to answer “no” to or they will not offer you a new policy until you are considered fully recovered by their standard. With that said, once your policy is in force, insurance companies cannot modify the contract they have with you unless you consent to accept their terms. It is legal and binding from the date you accepted and paid for the policy. No modifications to the coverage can be added without your approval.

Death from COVID-19 would be considered “natural death” and paid out according to the terms written in the life insurance contract you bought. Life insurance is not like auto or homeowners insurance which has a lot of “grey areas.”

What If Someone Dies From The Vaccine

If you or a loved one that is covered under a life insurance policy were to pass away due to a reaction with the vaccine, this may be considered an accidental death claim on policy that is in force. That would be the decision of the County Coroner. Even Guaranteed Acceptance life insurance (designed for those in poor health) must pay out the full benefits even if in the “waiting period” if it is considered and accident.

Cases of this are rather rare but statisically possible.

Conclusion: Can You Get a Life Insurance Policy During COVID-19

People are buying new final expense life insurance policies from us daily. Yes, life insurance companies are accepting applications and issuing new policies, just understand that underwriting certain medical conditions like COVID-19 may restrict you from certain companies until you are considered “fully recovered” by their underwriting standards. Again, consult with a pro who specializes in this market.

Medical and age related risks are going to always result in higher rates. This is nothing new to the life insurance business. This is just another reason why it is important to lock in your rates sooner than later on any life insurance you buy. Don’t expect a new policy to be as low as it was just a few years ago. The virus has resulted in a lot of death…even if the data reported has been skewed.

Applications for life insurance have definitely increased with all the negative news of the pandemic. COVID-19 took us back 100 years…to the Spanish Flu. While seniors have been most affected by this illness, the general public has a new realization that planning for the future is more important than ever. Even people from the younger generations are realizing health can change at any time. Life insurance is purchased because it protects our loved ones from the realities of life. The pandemic is just one more reason why financial planning for our family’s future is very important.

You can still plan ahead and get an affordable life insurance policy that will cover Coronavirus related death just like it would any other illness. “Thinking about it” is not really a good excuse these days and can cost of families dearly. Too much has happened since 2020…claiming plenty of people tossing around the idea of life insurance in their head.

Be sure to take action… particularly if life insurance has been taking a back seat in your planning. We have all gotten a “kick in the pants” as of 2020… planning is very important. None of us want to leave our family in a financial mess in our absence. Get a free, instant quote now to get the planning process started and don’t hesitate to call to a professional for some guidance on the best policy and company for your particular needs. There are always options when you work with a reputable, independent agency like Maple Valley Insurance Group. We are here to help you quickly shop for the best policy and life insurance protection for your money. Peace of mind for you and your family. 269-244-3420

As always, we welcome your feedback below.

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