Life Insurance After Covid: What You Need To Know

The COVID-19 pandemic has affected almost every aspect of life, and life insurance is no exception. While it is possible to purchase life insurance during a pandemic, even if you've had COVID-19, the lasting effects of the virus may impact your premium and policy options. Life insurance companies are adapting to the current environment and the long-term effects of the pandemic, which are still being determined.

Life insurance applications may include Covid-related questions

Some life insurance applications may ask about your history of testing positive for Covid-19 and whether you have a current diagnosis. They may also ask about your vaccination status, though this is less common. It is important to note that the answers to these questions could impact your application. For example, a 'yes' response to a question about a Covid-19 diagnosis could cause an application to be delayed, but it does not mean that your application will be rejected outright.

If you have had Covid-19, it is worth noting that the lasting effects of the virus may affect your premium and policy options. Long-term complications from Covid-19 may impact the types of life insurance policies you are eligible for and how much you will pay for them. However, this is not a given, and it is still possible to qualify for affordable coverage if you are in good health.

If you are currently sick with Covid-19, many carriers will pause your application until you have fully recovered. The delay in the application review period can range from two weeks to three months, or even up to six months in severe cases.

Covid-19 vaccines do not void life insurance policies

The COVID-19 pandemic has affected nearly every aspect of life. While widespread vaccination has helped to reduce the impact of the coronavirus, concerns remain about the disease and the vaccines themselves. Many people have expressed concerns about the safety and effectiveness of the vaccines. However, the fact is that some vaccines have full approval from the U.S. Food and Drug Administration (FDA). Even vaccines being used under an emergency-use authorization are not experimental – they just haven't completed the full regulatory review process yet.

Based on extensive evidence, the CDC states that “COVID-19 vaccines are safe and effective” and that “vaccination helps protect adults and children ages 6 months and older from getting severely ill with COVID-19, and helps protect those around them.” The American Council of Life Insurers has also issued a statement to debunk the rampant myths surrounding the COVID-19 vaccine. The organization’s senior Health Actuary has stated that “policyholders should rest assured that nothing has changed in the claims-paying process as a result of COVID-19 vaccinations. Life insurance policies specifically outline what they provide and the circumstances that could lead to the denial of a claim. These exclusions simply don’t include a policyholder’s vaccination status”.

Life insurance companies are paying benefits to policyholders who pass away due to the coronavirus and other causes, and vaccine status has no bearing on whether or not death benefits are paid out. Whether you have a term or whole life insurance policy, your beneficiaries won’t be penalized for your decision to get vaccinated. In fact, getting vaccinated could indirectly help you qualify for life insurance with better terms by reducing your risk of contracting COVID-19 or limiting the severity of the infection and its long-term consequences.

It is important to note that while the COVID-19 vaccine does not void life insurance policies, getting COVID-19 could hurt your ability to get a new policy in the future, especially if you develop more severe long-haul symptoms. Additionally, if you are applying for a new policy, your life insurance application may be impacted if you travel to a country with high rates of COVID-19. It is always best to be completely honest and forthright during the life insurance application process to avoid any issues.

Life insurance is still possible with long-term Covid complications

If you have long-term lung or kidney issues, your life insurance premiums are likely to be higher. If you were on a ventilator while recovering from Covid-19, many life insurance companies won't offer the best rates until after two years have passed. However, you can still be approved, but at a higher cost.

The life insurance industry is still adapting to the long-term effects of the pandemic, and there is uncertainty about how Covid-related factors like pre-existing conditions, compromised mental health, or delayed care may affect future mortality assumptions. As a result, insurance companies are gathering data on all the ways Covid may be impacting mortality, including indirect effects like opioid overdoses and suicide rates.

If you have long-term Covid complications, it is highly advisable to speak with an experienced life insurance agent to get clarity on your options.

Life insurance eligibility and premiums are influenced by age and health history

Life insurance eligibility and premiums are influenced by a variety of factors, including age, health history, and pre-existing medical conditions. While it is possible to purchase life insurance after contracting COVID-19, the lasting effects of the virus may impact the cost of premiums and policy options. Age is a significant factor, as premiums are typically lower for younger individuals who are generally healthier and have a lower risk of developing health complications.

Health history and pre-existing medical conditions also play a crucial role in determining life insurance eligibility and premiums. Individuals with a history of health problems or chronic illnesses may face higher premiums or have difficulty obtaining coverage. This is because insurers often assess an applicant's health history and weigh their mortality risks when setting premiums. The presence of pre-existing conditions, such as cardiac or pulmonary issues, can increase the cost of coverage.

In the context of COVID-19, individuals who experience long-term complications, such as long COVID or post-COVID symptoms, may find that their insurance options are limited or more expensive. Long COVID can include a range of symptoms such as fatigue, breathing difficulties, cognitive issues, mental health problems, gut issues, loss of taste or smell, and organ damage. These symptoms can persist for months or even years after the initial COVID-19 diagnosis, impacting an individual's daily functioning.

When applying for life insurance, it is essential to be honest and disclose any pre-existing health conditions or long-term complications from COVID-19. Misrepresenting or withholding information could result in life insurance fraud and the nullification of the policy. Additionally, it is worth noting that the COVID-19 vaccine does not affect life insurance coverage. Vaccination status is not considered when deciding on claims, and it is not a reason for benefit denial.

The process of starting a life insurance policy can be quick and straightforward

During the pandemic, some safety measures were implemented, such as pausing in-person medical exams to avoid contact during the application process. These measures were dependent on the current public health guidelines.

While you can still get a quote and start the process of applying for life insurance, it's important to note that there may be delays in the application process if you have had COVID-19. Many carriers will pause your application until you have fully recovered, with the delay ranging from two weeks to three months, or even six months in severe cases. This is to factor in any potential long-term effects of the virus, which could affect your premium and policy options.

It's crucial to be honest during the application process and disclose any relevant information, such as your travel history and COVID-19 diagnosis or symptoms. Misinformation and misconceptions about COVID-19 and its impact on insurance policies are common, so be sure to review the policy details and consult reliable sources or professionals for guidance.

Frequently asked questions