What to Know About Life Insurance and the Coronavirus

The coronavirus (COVID-19) has affected lives and industries worldwide, leading many to wonder whether COVID impacts life insurance coverage.

Generally, your eligibility for life insurance isn't significantly affected if you’ve had COVID-19 or received the vaccine. Life insurance provides financial protection, including for deaths caused by COVID-19-related illnesses. However, severe symptoms or long COVID may impact your premiums, so compare different insurers to find the best rates for your situation.

Life insurance policies generally cover deaths related to COVID-19, whether the virus directly caused the death or contributed to a health decline leading to death. However, certain conditions could affect claim approval.

Coverage may be denied if the insured provided false health information during the application or if fraud is involved. For example, if a policyholder hides their COVID-19 diagnosis when applying for the policy and later dies from the virus, the insurer may deny the claim due to non-disclosure of important health information.

Policyholders must review their life insurance policies and speak with their insurers for the most accurate and up-to-date information regarding life insurance pandemic responses, especially as insurers continue to adapt to new health developments and scientific guidance related to coronavirus and life insurance.

Securing life insurance after a COVID-19 diagnosis is generally possible, but applicants may face delays or extra scrutiny. Insurers now typically evaluate the long-term health effects of COVID-19, which can impact underwriting and policy availability. This increased risk perception has led to changes in premiums and policy terms.

For example, people who have recovered from COVID-19, especially those with lingering symptoms, may see higher premiums. Insurers adjust their life insurance underwriting processes to account for these risks, often requiring more detailed medical history and follow-up on post-recovery conditions. This may include assessing the severity of the illness and any lasting effects, such as lung damage or chronic fatigue, which could impact life expectancy and life insurance costs.

Applying for life insurance requires disclosing your health status as part of the underwriting process. Insurers may request additional medical records and, depending on when you had the coronavirus, may impose a waiting period before issuing a policy.

Throughout this process, life insurance companies are equipped to handle claims involving deaths from COVID-19, and receiving the COVID vaccine shouldn't affect the claim’s outcome. While filing a claim during this difficult time can be challenging, understanding these steps can help make the process smoother.

Navigating life insurance during the COVID-19 era raises several common questions. Here’s a breakdown to help you understand life insurance and COVID's impact.