Life Insurance And Covid-19: What's Covered?

Life insurance policies have been significantly impacted by the COVID-19 pandemic. In the early stages of the pandemic, life insurers imposed waiting periods for certain age groups and those who had been infected. However, with the widespread availability of vaccines in major economies such as the UK and the US, life insurers have become more relaxed about offering cover to those with underlying health conditions. Legal & General, for example, typically imposes a 12-month waiting period on clinically vulnerable customers where COVID-19 may be life-threatening. They now ask about vaccination status to provide cover to customers who might otherwise be declined. While vaccination status does not currently affect the price of life insurance products in the UK, it could influence the cost or size of cover for those in high-risk medical groups.

Legal & General imposes a 12-month waiting period for clinically vulnerable customers

Life insurance policies have been significantly affected by the Covid-19 pandemic. While the vaccine rollout has helped the UK recover from the worst of the pandemic, Covid-19 continues to impact our lives in many ways. For instance, an estimated 2 million people in the UK are suffering from "long Covid".

Legal & General, a leading UK insurer, has imposed a 12-month waiting period for clinically vulnerable customers. This means that applications for new life insurance policies are typically postponed for 12 months unless a customer can confirm that they have received their required vaccine doses. This waiting period is designed to assess the impact of Covid-19 on the customer's health and ensure that they are not at high risk of life-threatening complications from the virus.

The waiting period is in line with the approach taken by other insurers, who are increasingly considering vaccination status when granting cover. However, it is important to note that vaccination status is not currently affecting the price of any life insurance products in the UK.

Legal & General's waiting period policy highlights the evolving nature of the insurance industry's response to the pandemic. While some insurers initially offered free cover during the underwriting process, there are now more restrictions in place. For example, some insurers will only pay out for accidental deaths during the free cover period, excluding deaths due to coronavirus.

The waiting period imposed by Legal & General aims to balance the need for protection during the pandemic with the assessment of risks associated with Covid-19. It ensures that clinically vulnerable customers receive the necessary coverage while also allowing the insurer to evaluate the potential impact on their policies.

Legal & General asks about vaccination status in some cases

Life insurance provider Legal & General has been asking about the vaccination status of its customers in some cases. This is in relation to applications for new life insurance policies.

In scenarios where the impact of Covid-19 "is known to be life-threatening", Legal & General typically postpones applications for 12 months unless a customer can confirm whether or not they have had their required vaccine doses. This is in contrast to other insurers, such as Zurich, who do not ask about vaccination status and have no immediate plans to do so.

Legal & General's policy is in line with the position that, while there are no federal, state, or international privacy regulations prohibiting businesses from asking employees, customers, or third parties about their Covid-19 vaccine status, there are privacy regulations relating to how this information is recorded and stored.

In the US, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) covers healthcare providers, health plans, and healthcare clearinghouses, but it does not cover or apply to employers. However, the Americans with Disabilities Act (ADA) and the Fair Employment and Housing Act (FEHA) permit employers to request or require that employees provide documentation of their vaccination status.

In the UK, the Information Commissioner's Office (ICO) has stated that businesses can ask for proof of Covid-19 vaccination status, but they should ensure that the personal data collected is relevant and limited. The ICO also recommends that businesses consider alternative ways to achieve their purpose, rather than collecting and processing individuals' vaccination status.

You can get life insurance if you've had Covid-19

If you've had Covid-19, you can still get life insurance. However, it's important to be aware that not all insurance companies will offer coverage to those who have previously been infected with the virus. Those that do will usually state this clearly or will answer readily if asked. When in doubt, ask your insurance agent directly.

Honesty is an extremely important factor in obtaining appropriate coverage. You need to disclose that you have had Covid-19 on the application form and be honest about your symptoms and treatment. Insurers are likely to ask questions such as:

• Have you tested positive for coronavirus?
• Have you had any symptoms of Covid-19?
• If you have had Covid-19, what treatment (if any) did you receive?
• Are you still experiencing symptoms of Covid-19?

If you answer "yes" to any of these questions, you may have to provide further information to the insurer before they issue terms. For example, as of early September 2021, Zurich asks if you have tested positive in the past three months, while Royal London, Aviva, Legal & General, and LV= say they only ask about the past 30 days.

Aviva wants to know about earlier infections if you were ever hospitalised with the virus, while Royal London says it may need to know about any positive tests if you have disclosed other medical conditions. Vitality says that you should declare if you have ever had the virus.

Both Aviva and LV= say that disclosing a Covid infection is unlikely to impact your eligibility for insurance or the price of cover unless you were hospitalised with the virus and as long as symptoms have fully resolved. Legal & General says your response will not impact your premium.

Exposure risk will also be a determining factor in your quote, so if you've recently travelled to or reside in a high-risk/high-spread area, or work in a position that frequently risks exposure, be aware that these facts may impact your available coverage.

If you've taken steps to reduce your potential for Covid-19 infection, such as getting a vaccine or a follow-up "booster shot", be sure to mention that to your life insurance agent as this proactive step may be beneficial to your quote.

You don't need to have had the vaccine to get life insurance

Life insurance is designed to provide financial support to your loved ones when you are no longer around. It is a way to ensure that your family is financially protected even after you are gone. In the context of the COVID-19 pandemic, there has been some confusion and misinformation about how COVID-19 and its vaccines affect life insurance policies.

Firstly, it is important to clarify that your vaccination status does not impact your eligibility for life insurance. While some insurers, such as Legal & General, may postpone applications for new life insurance policies if the applicant cannot confirm their vaccination status in scenarios where COVID-19 is known to be life-threatening, other insurers, like Zurich, do not currently ask about vaccination status and have no immediate plans to do so. Your vaccination status will not affect the price of any life insurance products in the UK.

Additionally, getting vaccinated against COVID-19 will not void your existing life insurance policy. This has been confirmed by state departments, insurance industry groups, and the American Council of Life Insurers. Life insurers do not consider vaccination status when deciding on claims, and COVID-19 vaccination is not a valid reason for denying benefits. In fact, getting vaccinated can positively impact your life insurance by reducing the risks of long-haul symptoms and serious illness from breakthrough infections.

When it comes to life insurance and COVID-19, it is crucial to be honest about your health status. If you have tested positive for COVID-19 or experienced any symptoms, disclose this information on your application form. Insurers typically ask questions about positive tests, symptoms, treatment, and ongoing symptoms. Being transparent ensures that your policy remains valid and that your loved ones can receive the financial support they need in the event of your death.

In summary, while COVID-19 and its vaccines have raised questions about life insurance policies, it is important to remember that your vaccination status does not determine your eligibility for life insurance. Getting vaccinated will not void your existing policy, and it can even provide potential benefits in terms of reducing health risks. Always be honest about your health status when applying for life insurance to ensure that your policy remains valid and your loved ones are protected.

Getting the vaccine won't void your life insurance

There has been a lot of misinformation regarding the COVID-19 vaccine and its impact on life insurance policies. Many social media posts have warned that the COVID-19 vaccine voids life insurance policies, but this is not true. Getting the COVID-19 vaccine will not invalidate your life insurance.

State insurance departments and insurance industry groups have issued statements clarifying that insurers are prohibited from refusing to pay out a death benefit if someone has received a COVID-19 vaccine. The New York State Department of Financial Services, the Texas Department of Insurance, and the president of the Texas Association of Life and Health Insurers have all confirmed that the vaccine does not affect death benefits. Several other states, including Alaska, Louisiana, Maryland, Washington, and Wisconsin, have issued similar statements.

The American Council of Life Insurers (ACLI), which represents 94% of industry assets in the US, has also stated that life insurers do not consider vaccination status when deciding on claims. Life insurance policy contracts are clear about what causes might lead to the denial of a benefit, and a COVID-19 vaccine is not one of them.

Life insurance companies do not consider whether or not a policyholder has received a COVID vaccine when deciding whether to pay a claim. Therefore, getting vaccinated will not void your life insurance coverage or prevent you from getting life insurance. If you have doubts or concerns, you can contact your life insurance company for direct answers and review your policy thoroughly.

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