How important is life insurance?
It is a question that’s hard to answer, mainly because, for now, the details vary from one insurer in the state to the next. Generally, unless you have had COVID-19 or have recently travelled to one of the affected areas or parts of the world and didn’t disclose it when applying for a policy, then you are covered. Most life insurance companies in Texas or any other state for that matter can’t change the terms of coverage for all their active policies, so anyone who was previously covered continues to be covered.
Does COVID-19 Make it More Challenging To Qualify for A New Life Insurance Policy?
If you were infected by the coronavirus or travelled to a part of the world where the outbreak has been severe, applying for an insurance policy can be more expensive and take longer. Also, some insurers have seized selling their policies to people older than a certain predefined age. The terms and respectively, the rates also change as many insurance companies are trying to make sense of the situation similar to everyone else.
Though, there is one respect in which getting life insurance has become easier, and that is not having to go in for an examination. Many companies have removed the requirement for an on-site medical exam mainly because of the social distancing policies and widespread shutdowns, which have made these exams impractical.
A couple of other insurers have extended the exam deadline for new customers. However, many online insurance companies were offering policies without a formal medical exam even before the outbreak in early 2020.
What Steps Have Insurance Companies Taken In Response to the Pandemic?
Many people are rightfully concerned about the long-term impact COVID-19 will have on the life insurance industry. Unfortunately, at the moment, it is too early to say for sure. Many patients have reported suffering lasting lung damage, though professionals and experts in the medical community need more time to determine the long-term impact of the virus. One thing is for sure that a growing number of people have reported and will experience long-term, lasting consequences which may be incorporated into future underwriting standards, affecting coverage and cost for survivors.
Many experts also strongly believe that COVID-19 is here to stay and will last beyond the current crisis situation. It will eventually join the existing family of seasonal respiratory illnesses. However, it all also hinges on how quickly and precisely how effective new treatments and vaccines become. The threat of COVID-19, regardless of how you cut it, may raise the cost of life insurance.
At the moment, it is hard to say what COVID-19 related complications will be covered in the future. At the moment, things are still vague as insurance companies are scrambling to find the right balance between being profitable and not tarnishing their reputation by pulling everyone’s coverage. However, we hope that the dust will settle sooner than later for those seeking life insurance.
Contact us today if you have questions about your policy, or if you want to compare policies from multiple providers.