Coronavirus & Life Insurance: Your Questions Answered

Whilst life insurance isn’t a legal requirement, it’s good to have as it ensures that your loved ones are financially protected in the event of your death. And the importance of life insurance has become even more significant during the COVID-19 pandemic. With death tolls still in the hundreds daily, many people have been left wondering what would happen to their families if they unexpectedly pass away. We are currently in the midst of a global pandemic that has slightly altered life insurance and who is allowed to take out a policy. So, if you’re considering getting life insurance, it’s worth familiarising yourself with how life insurance has been impacted by COVID-19.

Please note: this information is accurate as of 1st June 2020.

Does life insurance cover coronavirus?

If you have a life insurance policy in place and pass away from COVID-19, it is likely that your insurer will pay out upon your death, as long as you filled out the application truthfully when you took out the policy. However, after the SARS outbreak, some insurance providers did alter their policies to exclude pandemics. Now is a great time to review your life insurance policy and check that it does cover pandemics. Read through the exclusions so that you know exactly what you are and aren’t covered for. If you’re unsure, contact your insurer and ask for assistance.

Can I get a life insurance policy during a pandemic?

Many people wrongfully assume that insurance providers stop selling life insurance policies during a pandemic. Currently, you’re still able to get a life insurance policy provided you aren’t displaying any symptoms of coronavirus.

Can I get life insurance if I’ve tested positive for coronavirus?

Due to the high number of people that have been affected by COVID-19, life insurance providers have had to review their terms. Whilst the vast majority of people that contract coronavirus do make a full recovery, providers have postponed offering life insurance policies for those that have or have had COVID-19. In some cases, you’ll also be unable to get a policy if you live with someone who has or has had coronavirus. If this applies to you, you’ll be able to reapply again, normally 3 months after you’ve made a full recovery.

Have life insurance applications changed since the pandemic?

Yes, most insurers have introduced new questions when applying for life insurance to determine whether someone has or has had symptoms. The questions that have been added are to determined whether someone has:

  • Symptoms of coronavirus
  • Been advised to self-isolate
  • Tested positive for coronavirus
  • Been in direct contact with someone who has tested positive for coronavirus
  • Been in direct contact with someone who had coronavirus symptoms

If you answer yes to any of the above, your application will be postponed.

Will it take longer for my life insurance application to be approved?

If you’ve recently applied for life insurance, it’s likely that there will be delays when it comes to getting your application approved. Due to the unprecedented times we’re currently facing, GPs will take much longer to get back to insurers if they’ve been asked to provide additional information. Also, there are delays in medical examinations and screenings. However, some insurers are trying to minimise the need for additional information from GPs and some are arranging for medical screenings to be done via video call so that they can get applications approved much quicker.

Comparing life insurance providers

We champion great service, that’s why we rank insurance providers based on customer experience and product quality, rather than price. We believe that cheap life insurance isn’t necessarily the best life insurance, you need a policy from an insurer that will be there for your family in the unfortunate event of your death. Here’s our top three life insurance providers: