Applying for life insurance during the Coronavirus outbreak brings on new complexities. Beyond the cautions of working with professionals, policy applicants are encountering added layers of caution from insurers.
While the long-term ramifications of COVID-19 aren’t yet known, its rapid spread around the globe has many on high alert. Barring any major changes, however, it’s likely that the coronavirus will have a larger impact on people who are applying for a life insurance policy than those who already have a policy in place.
The most immediate implication the coronavirus has on life insurance is on applicants.
If you’re applying for life insurance now and planning a trip to a country that’s heavily impacted by the disease, you’ll likely need to wait until after your return to complete your application,” explains Nicholas Mancuso, manager of the disability and advanced planning team. “But if you already have life insurance, and you die from the coronavirus, your beneficiary will still receive the survivor benefit.”
Due to the current spread of the coronavirus, there is a chance that your application for life insurance could be affected if you’re traveling.
Many insurers may postpone application approval if you have returned from travel outside of the U.S. within the last 30 days or have future plans to travel abroad. Additionally, some life insurance companies may postpone your application if you have a member of your household who has recently returned from travel outside the U.S. or if you have come into close contact with someone who has tested positive for COVID-19. You may also be required to provide a statement of good health for a new or pending life insurance application.
How each life insurance company will treat your application if you happen to contract the coronavirus will also vary. Insurers may postpone your offer for up to 90 days or until you have made a full recovery.