As the coronavirus pandemic continues to threaten the health of people in almost every community on the planet, it's natural for more people to consider the importance of life insurance in the current situation - especially with the rise of the Delta variant.
Does coverage apply to a death caused by COVID-19? Has life insurance gotten more expensive? Should I apply for life insurance now?
Our team has answers to the most common FAQs about life insurance during the COVID-19 pandemic below. For specific guidance, please book a session with us at Richard Dean Insurance.
Does Life Insurance Cover COVID-19?
Yes. Unless you already had COVID-19 or recently traveled to affected areas and didn't disclose that when you applied, your policy will cover you if you pass away due to COVID-19. Life insurance companies cannot change the terms of coverage for active policies, so anyone who was covered remains covered.
Has COVID-19 Made it Harder to Get a New Life Insurance Policy?
If you've been infected with the coronavirus or have recently traveled to a region with a heavy outbreak, applying for life insurance could take longer. Because of how quickly the course of the pandemic can change, terms and rates may change as life insurance providers continue adjusting to the situation.
You can easily get a free quote from Richard Dean Insurance and compare your options.
Will COVID-19 impact life insurance requirements in the long term?
It's too early to know for certain. Some recovered patients have suffered lasting lung damage, but medical professionals will need more time to assess the true long-term impact of the coronavirus.
If there are lasting consequences, life insurers may incorporate that information into their underwriting standards, which could affect the cost of coverage for COVID-19 survivors. Make sure you keep up with public health updates and communicate regularly with your insurance agent.
According to some researchers, it's also possible that COVID-19 could last beyond the current pandemic and join the established family of respiratory illnesses that we deal with every season. Depending on how quickly and effectively new treatments and vaccines are developed, the threat of a recurring COVID-19 season might mean higher costs in life insurance, but this would likely taper off as the world gets used to a recurring COVID-19 season.
Does the Current COVID-19 Pandemic Make it More Important to Have Life Insurance?
Anyone who provides care or financial support to their family members should have enough life insurance to replace that support for as long as it's needed. Married couples — even those without kids — can also use life insurance to ensure that each spouse can maintain their joint standard of living even if the other passes away.
If you aren't married and don't have any dependents, life insurance is probably not essential for you. However, consider that your situation may change in the near future. If you have a parent whom you expect to support in their old age or a significant other whom you plan to marry, those ties may justify obtaining coverage ahead of time.
Choosing a life insurance policy is daunting and requires the help of a seasoned insurance agent. If you’re in need of a life insurance policy that is tailored to your situation and takes the pandemic into account, get in touch with Richard Dean Insurance today.
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