Life Insurance and Covid-19 Pandemic

Covid-19 Pandemic is affecting almost all sectors of life. People are going through an unprecedented situation, and they have to think about their future like never before. Life insurance is one such aspect about which people are seriously giving a thought. Although the majority of people are already life insurance consumers. However, the uncertainty of life posed by Covid-19 Pandemic is making non-insurers to think about it. While currently, existing consumers are demanding clarification about the consequences of Pandemic on their coverage.

Life insurance is a type of insurance contract under which the insurance company pays your family members or dependents a previously agreed-upon sum of money after your death. This can be extremely helpful for any dependents you leave behind.

The biggest question that a lot of people have right now is how the Corona Virus will impact existing insurance plans. Another critical question that many people have is how the Virus would impact the new life insurance contracts that people will sign. This question is a little trickier.

Life insurance companies don’t offer coverage to people who’re already diagnosed with terminal conditions. Furthermore, the older and less healthy you are, the more expensive of a contract you will get. For this reason, companies make sure that you’re healthy before offering you a policy.

During the current Pandemic, there is a lot of concern about people who already have the virus buying life insurance policies. Therefore, companies ask more questions to make sure that they don’t offer coverage to anyone who has the Virus. Therefore, if you meet with a life insurance agent these days, they will typically ask you the followings questions:

• Have you tested positive for Corona Virus?
• Have you been advised to self-isolate by doctors?
• Have you had direct contact with anyone who has tested positive for the Virus?
• Have you been showing symptoms of Corona Virus?

If you have tested positive for the Virus, then the company will most likely decide to delay or postpone the contract to make sure that you have recovered. Similarly, if you answer yes to any of the other questions, they might decide to delay the contract to make sure that you don’t have the Virus.

However, if your answer to all the questions is no, then you shouldn’t have any trouble getting a life insurance policy. Keep in mind though that you might face delay due to the disruptions to business caused by the Pandemic.