The COVID-19 pandemic has not only turned lives upside down in terms of employment opportunities or your social life, but you might also have certain questions, such as the validity of your health and life insurance in COVID-19.
Health and life insurance in COVID-19
Does Life Insurance Provide Coronavirus Coverage?
If you already have life insurance, your family will be entitled to the death benefit in the case of COVID-19. However, there will be stricter regulations if you apply for a life insurance policy during the pandemic. You would either pay a higher premium, or the coverage might not be provided instantly.
Existing Policy Holders
If you have an active policy, the insurer is under obligation to provide coverage to you and your family if you are either affected by the pandemic or traveling to an affected area. When it comes to life insurance cover for coronavirus, existing policyholders should not face any issues.
Fresh Applications
If you have contracted COVID-19 and are applying for a life insurance policy, you will pay a higher premium as compared to others in your age or sex group and lower classification health-wise. If you recover from the virus and then apply, your premium will be slightly higher.
Recent Applications
If you are a recent policy purchaser and have either suppressed facts about contracting the virus or visiting an area affected by it, any claims made are liable to be rejected.
Even though life insurers have to honor claims after the contestability period, they can make an exception. Your application can be contested in the first two years of activation of the policy.
Getting health insurance in COVID-19 is difficult as the insurer knows that your mortality rate becomes higher. The same applies to life insurance, and your application is likely to be rejected. Do you need assistance with all your life or health insurance questions? Contact the experts at VGW Walker Insurance in Texas today.
