By David Hauptman
There’s renewed interest in life insurance as the coronavirus pandemic continues, and its interest stretches well beyond those at higher risk, like seniors or individuals with co-morbidities.
The heightened risks, any way you look at it, make life insurance the logical go-to for protecting your loved ones...just in case. Further, many companies have keyed in on the importance of business continuity and are getting life insurance on their key employees and owners. Those who have no pre-existing conditions may not even have to get a medical exam – for term or permanent life policies with death benefits up to $3 million.
Not only do you not necessarily need a medical exam, but yes, deaths caused by COVID-19 are covered by the policy. However, while the rules may vary among insurers, anyone who has had symptoms or tested positive or been exposed to anyone with COVID-19, may be subject to a waiting period before getting pandemic life insurance coverage.
The medical exam that’s typically required of life insurance products makes some people view them as being more complicated than necessary. That’s also been one reason for a drop in ownership: Less than six in 10 people owned a policy before the pandemic, as 17 million households began the buying process in 2019, versus 19 million a year earlier.
Clearly, the pandemic stands to reverse the trend, and insurers are more than happy to meet the new demand. Given the circumstances, though, they are just as happy to avoid the risk involved in the usual medical exam process as you are to avoid the extra steps. The exam is usually done in the applicant’s home by a paramedic, who takes blood samples and asks questions about your medical history. These days, though, that all can be verified through a medical information service that shows hospitalizations and pharmaceutical prescriptions.
You can also, of course, get pandemic life insurance even if you have pre-existing conditions, but you’re not going to be able to avoid the medical exam. The same applies if you want a bigger death benefit. Some insurers are extending the deadline to take the exam. Others are accepting records from a recent health exam with your physician, though both may delay the process.
If you do have a health condition, don’t let that deter you from applying for the pandemic life insurance coverage you need to protect your family, and don’t try to hide it. Pre-existing conditions will always be revealed in the medical information report that insurers are allowed to access. It will boost the premium somewhat, but a term policy isn’t all that expensive to begin with, depending on your age and death benefit. A 39-year old can leave his or her family comfortable with a $1 million, 20-year policy for $900 a year, for example.
In the “old” normal – those pre-coronavirus pandemic days – getting a life insurance policy was always a smart move. Who wouldn’t want to provide for loved ones in the event of the breadwinner’s untimely death? Or to make sure a business isn’t left to flounder financially should key executives prematurely pass? The heightened uncertainties of the new normal mean that pandemic life insurance is not really optional anymore.
If you would like to explore all your personal insurance options in one place, including pandemic life insurance, explore our Personal Insurance Marketplace.