Importance of Life Insurance During COVID-19

Importance of Life Insurance During COVID-19

Mortality is one of the unpleasant subjects for people, especially the youth. However, the growing concern about the health risks and the increasing number of deaths reported every month due to the ongoing pandemic has encouraged people to invest in life insurance. 

Do Insurance Companies Cover COVID?

If you aren’t insured yet, now is the time to consider signing up for whole or term life insurance to offer financial protection to your loved ones in your absence. The application process for life insurance has changed slightly after the pandemic. Fortunately, insurance policies offer coverage for the deaths due to COVID-19 (excluding those who already had the infection at the time of applying).

If you have traveled to a country that suffered a heavy outbreak or recovered from the infection, the insurance application will be a little expensive and time-consuming for you. Insurers faced many challenges during COVID, which is why they have made changes to the coverage, application, and premiums. Some insurers do not accept the insurance application of candidates above a certain age. Others take the medical questionnaire, which includes the details of COVID history in your family, for proper evaluation. 

How Has Life Insurance Industry Responded to the Pandemic?

For people who have lost their only source of income with their employer’s business shutting down due to the pandemic, you can call your insurance company to see what options they have for you. Some insurers have eased the premium requirements, by allowing a 90-day grace period for people who are not in a financial state to make premium payments on time.

It will be too soon to tell the long-term impact of the COVID pandemic on the insurance industry. Those who have recovered from the virus are at high risk of developing long-term lung damage. If the virus is found to have a lasting impact on the patients’ immune system, the insurers will add this information to their policies. It might make life insurance slightly expensive for COVID survivors. The lockdowns and other restrictions due to the COVID outbreak might have eased, but the new variants keep emerging. The threat of a new virus means a higher cost of life insurance.

Life Insurance Pandemic Clause

Given that you are paying the premiums on time and your life insurance is in good standing at the time of your death, the cause of your death will not affect the policy. Whether you die in an accident or from a COVID infection, the surviving members of your family will be entitled to insurance benefits. 

COVID-19 doesn’t change the answer to “whether life insurance is important”. As much as it hurts to talk about death, it is an inevitable part of everyone’s life. You need life insurance for any illness—whether it is COVID or chronic disease—that puts a financial strain on your family. 

Life insurance seems isn’t important for individuals living alone. However, if you have family or a plan to raise one, consider getting a life insurance policy is important. If you are looking for a top life insurance agent in Riverside California, Dr. Kit is your answer, at OHANA Life Insurance. He will help you find a plan that suits your requirements and budget.

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