Covid-19 and Life Insurance
The Coronavirus Pandemic has impacted nearly every area of our lives. As such, many of us will be thinking about our health. And, what insurance we might need to look after our loved ones should the worst happen. With this in mind, we have put together a Q&A on Covid-19 and Life Insurance. We have also looked at other areas of protection insurance that may also be important to consider at the moment.
If you have any questions about Life Insurance or any area of protection insurance, our experienced team is at the end of the phone to help. Our whole team is currently working from home with all our systems set up to help our clients in the usual way. This is a changing situation and our team will stay on top of developments in order to provide you with the most up to date information. Please do not hesitate to contact us if you have any questions.
Is now the right time to think about taking out Life Insurance?
Our advice to clients is to look at all of your outgoings such as your mortgage and other bills. And consider whether your loved ones would be able to afford those commitments if you were no longer around and without your salary.
It’s not always easy to think about the sensitive subject of dying and what would happen to your loved ones after you’ve gone. But, with the Coronavirus pandemic, it is probably on our minds more than usual.
If you think you need life insurance, we would suggest you act now and protect your family. You don’t know what’s round the corner.
Can I still take out a new Life Insurance Policy?
Life Insurance Companies are still taking new applications. Nearly all of them, though, have changed their processes to take into consideration the Coronavirus Pandemic.
This is so that insurance companies can manage the potential insurance risk. So, if you take out a new Life Insurance policy now, you might be asked if you’ve had Coronavirus or Coronavirus Symptoms. Also if you’ve been advised to self-isolate or been in contact with someone with the disease.
It is essential you answer these questions truthfully as this could impact on any future claims.
Will my existing Life Insurance Policy cover me for Covid-19?
Covid-19 is not one of the standard exclusions so generally speaking you should be covered. This is so long as you answered all the application questions truthfully at the time.
However, it is always worth checking your existing policy. Some insurance providers introduced exclusions for pandemics following the SARS outbreak in 2003. And this could mean that Covid-19 might be excluded.
What level of Life Insurance cover would be right for me?
The level of cover you need would depend on your individual and family circumstances. We would advise that speak to a specialist protection adviser like Your Mortgage Expert. We will take the time to review your circumstances and suggest a level of cover suited to your needs and budget.
Should I expect my application to take longer than usual?
There might be delays to your Life Insurance application at the moment for two reasons. Firstly, because most companies have fewer staff in the workplace than usual and so it may take slightly longer to physically process your application.
Secondly, you might find a delay because the product you choose requires information from your GP or a medical assessment. All Life Insurance Companies are aware of the huge strain in the NHS at the moment and so most are trying to underwrite without needing to use medical examinations or GP referrals. But there will be some cases where this might not be possible.
Our advice would be to start the process for applying for Life Insurance sooner rather than later to help mitigate any delays.
Will I be able to claim on my Critical Illness Policy if I contract Covid-19?
If you have a Critical Illness policy, you might be wondering if you can make a claim in the event you contract Covid-19.
Generally speaking, Covid-19 is not seen as a Critical Illness in its own right and so you would not be able to claim directly for it on your policy. However, if Covid-19 leads to complications which then brings about a critical illness, then you could then claim.
Might I have protection insurance through work?
It is worth talking to your employer to understand what insurances you have in place as part of your Contract of Employment. We would also advise that you check the level of cover to ensure that it meets your needs.
I am currently Furloughed from my employment. Does my Life Insurance cover benefit through work remain the same?
Because you are still employed by your Company, all your benefits should remain in place. This is assuming your Company continues to pay their premiums. If you are currently Furloughed at 80% of your salary, and you have Life Insurance benefit provided through work, it might be worth checking whether the pay out would be based on your 80% salary or your original salary.
How can Your Mortgage Expert help?
Whether people have taken their mortgage out with us or not, we can help. We will help clients understand if they have adequate levels of cover to protect them. Taking the time to talk you through all your options. Looking at all your income and expenditure, see what you are provided through your current employment and provide you with the necessary advice.
At Your Mortgage Expert, we offer advice on a range of protection products to help look after you and your family. Some of these products can be complicated so we believe it’s best to speak to someone to find out what’s most suitable for you. Especially around Covid-19 and Life Insurance. Contact Your Mortgage Expert to have an in-depth, no obligation conversation about your life, critical illness and income protection needs.
To find out more about the protection products Your Mortgage Expert can advise you on, take a look at our dedicated page. Alternatively, contact us.
We don’t charge for a consultation, so by speaking with us, you won’t be under any obligation. To find out more about our services and how we operate, visit our about us section.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Neither Your Mortgage Expert Ltd nor TenetLime Ltd cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.