Life and Disability Insurance FAQs during COVID-19

With all that is going on with Coronavirus, I've been getting a lot of questions about Life and Disability Insurance and the process for getting it. I am including below a few quick facts about the life insurance process. If you have any questions, feel free to reach out, no strings attached. This is information I think everyone should have during these trying times.

FAQS:

1. Q. Does my Insurance Policy cover COVID-19?

A. Most companies have policies that will cover the insured even in a pandemic situation like the one we are living. You should contact your agent/adviser to ask specifically about your policy. I would be able to answer this question provided a current policy.

2. Q. Can I buy Life Insurance/Disability during the pandemic?

A. Yes, you can. Companies are currently taking applications. Many companies are waiving the medical exam, but they will still rely on your medical records to make a final decision. As you know, many physicians’ offices are closed at this moment so that might delay the underwriting process. 

3. Q. Can I get coverage if I recently traveled to or plan to travel to China, Italy or other affected regions?

A. You can apply for coverage but most likely you will be asked to wait 30 days before continuing with underwriting process. Underwriting process is evolving every day regarding COVID-19, so if you have traveled and interested in applying for coverage, I encourage you to reach out to answer all of your questions. 

4. Q. Are Premiums going up as a result of the Pandemic?

A. Life insurance premium rates are not increasing due to COVID-19.

5. Q. Can I get coverage without medical exams?

A. Yes. Many companies are waiving medical exams however the underwriting process will be affected by it. Underwriters rely in as much information to decide about approval or denying coverage or, to decide the rating for the policy. If they feel there is not enough information, they might ask you to have the medical examination as per usual or even assign a not so favorable rating to your case. Medical examination companies are still working, is up to you if want to have the exam done or not. My take on this is, have the medical exam done. The nurses working for these companies are following all the guidelines from WHO and local authorities.

6. Q. If I am not able to pay my premiums, am I still covered?

A. Life and Disability Insurance policies are unilateral contracts, meaning if you stop paying premiums, your policy will lapse and there will be no coverage. However, most companies have a “grace period” that will allow you to skip one month of payment. More importantly, many companies are willing to work with you in these trying times. Please make sure you call you insurance company or contact your agent to make sure your policy doesn’t lapse. 

Recommendations:

1. If you need coverage now, there is no reason to wait. If you have financial dependents, such as children, a partner or aging parents you should consider buying Life and Disability Insurance. 
2. Know your options. Educate yourself. I often have meetings with clients where I found out they are overpaying for their coverage or the policy they have is not what they think it is. 
3. Review your policy. Chances are you have some spare time with this stay in place order. It’s a great time to take a look at your policies and finances.

Stay Healthy, Stay Home!