Life can feel uncertain right now. Living through the coronavirus pandemic can be downright scary; over 100,000 deaths worldwide have been attributed to the coronavirus. We've answered lots of questions about life insurance in the time of coronavirus over the past few months, and we want to share the following information with you so you can feel more in control and less uncertain about the future.
Here is what you need to know about life insurance: the coronavirus edition.
Will Life Insurance Cover Coronavirus Deaths?
If you've been worried that a corona-related death may leave your family hurting financially, don't.
"Yes, life insurance policies will cover deaths due to coronavirus," says Steve Cooper, an insurance broker at Aegis Insurance Markets.
Deaths from illness are typically covered under life insurance policies. In most cases, you won't have to worry about a claim being denied for an illness-related death.
However, there could be a few exceptions. An insurer might deny a coronavirus death claim if:
The policyholder submitted an incomplete or inaccurate application.
Failing to disclose travel plans, lying about weight or smoking habits, or even misrepresenting your income could invalidate your policy.
The policyholder only bought accidental death coverage.
Accidental death and dismemberment (AD&D) policies are designed to cover accidents, not deaths by illness or disease.
The policyholder didn't make premium payments.
If you fail to make policy payments, your policy could lapse. If you died while your coverage lapsed, no payout would be made to your beneficiaries. If you're having trouble making your payments, contact your insurer right away.
Can I Get Life Insurance During the Coronavirus Pandemic?
Insurers are still writing new life insurance policies, even in the midst of the coronavirus pandemic.
Coronavirus notwithstanding, insurance underwriters consider the following when deciding how much coverage to offer, and how much premium the insured should pay:
- Driving history
- Prescription history
- Family health history
- Alcohol/ tobacco use
- Age, height, and weight
- Prior medical issues and surgeries
Can you get life insurance during coronavirus?
- If you don't currently have the coronavirus, then your health and lifestyle will determine your eligibility.
- If you've had coronavirus and recovered, it's possible that an insurer may issue you a policy.
- If you do currently have the coronavirus, it's not likely that you'll be issued a policy.
- If you have coronavirus at the time of application and lie about it, it's very likely your policy will be invalidated and claim denied if you were to die.
Can I Afford Life Insurance?
Many people mistakenly believe life insurance to be a costly investment. But, in reality, life insurance can be affordable for just about anybody.
Some policies, such as term life, can offer you coverage for only a few dollars a day.
Other policies, such as whole life, may cost significantly more but offer guaranteed benefits and investment opportunities, as well.
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What Type of Insurance is Best for Me?
Life insurance comes in many levels of coverage. But, to put it simply, most policies are either term life or whole life policies.
Term life insurance is coverage for pre-determined amount of time. Typical terms can range from 2, 5, 10, or 20 years. When your term is over, so is your coverage. If you outlive your policy term, you receive no financial benefits. Term policies are the most affordable and often preferred by parents of young children who want to make sure their kids are protected until they are old enough to care for themselves.
Whole life insurance is coverage for your whole life. As long as you make your premium payments, whole life pretty much guarantees that your beneficiaries will receive benefits after your death. Whole life tends to cost significantly more than term life, however, you can get lower premiums by locking in a whole life policy when you are younger and in good health.
Is the Coronavirus Pandemic Impacting Life Insurance Rates?
Right now, no. The coronavirus pandemic has not currently led to an increase in life insurance premium costs.
This means it is still a good time to get a policy in place if you don't have one.
Whether or not rates will increase in the future depends on just how long this pandemic lasts and how many total lives are lost. It is not known whether rates will increase in the future as a result of this devastating pandemic.
How Does Life Insurance Work?
Life insurance is a contract between you and an insurer stating that, in exchange for a premium payment, the insurer will pay out a benefit in the event of your death.
If you have a valid life insurance policy and die as a result of a covered incident, your beneficiaries can file a claim against your policy and receive the death benefits outlined in your policy.
How Do I Get Life Insurance?
To get life insurance, call a licensed insurance broker like Aegis Insurance Markets to talk about your life insurance needs and financial goals and get a quote.
Your broker will then "shop" your policy around to various insurers to find you the best coverage and premium rates.
Next, you'll fill out an application.
Most policies require a medical examination, although you may have the option to enroll in a "no medical exam" policy for a higher premium rate.
An underwriter will review your application and the results of your medical exam in order to make a final decision.
Your policy is issued after final approval and completion of delivery requirements.
How Do I Submit a Life Insurance Claim?
In the event of a policyholder's death, the beneficiary will need to do the following to receive benefit payments:
- Obtain copies of the death certificate.
- Contact the policyholder's agent, broker, or insurance company for claim paperwork.
- Send in the required documents with a certified copy of the death certificate.
To make it easier for your beneficiaries, be sure to let them know the details of your policy. Who is your policy insured with, who is your insurance broker, how much is the benefit amount, and where to find copies of your policy.
Living in the time of the coronavirus pandemic can feel frightening. But you can rest assured that your loved ones are cared for in the event of your death if you have a valid life insurance policy in place. Call a life insurance expert at Aegis Insurance Markets at (800) 579-6369 to learn more about life insurance coverage for you and your loved ones.