Is there a pandemic impact on life insurance? Good question. As part of the panic that has consumed the world surrounding the COVID pandemic, many consumers are asking whether insurance companies are doing anything different, or perhaps, postponing the ability of consumers to obtain life insurance, for general pandemic related reasons. Aside from the limitations of medical exams, it’s been business as usual for insurance carriers.
Travel Matters
With regard to recent travel, while carriers have historically and routinely inquired about recent foreign travel, there will be greater focus on travel to countries where the Coronavirus is rampant. According to industry executives, “Life insurance companies have always asked about recent or planned foreign travel to various regions that may be considered hotspots, and that has always been an underwriting factor. This is similar. You can figure that if you’ve recently returned from one of the places in the world that are COVID-19 hotspots, one might expect most of the insurance companies to postpone underwriting your application for say, 30 days.
Pandemic Impact on Life Insurance: Much is Still Unknown
News from the CDC and other official offices is fluid and precisely how life insurance carriers will react moving forward is still unknown. While some companies have updated their underwriting guidelines, the good news is that they are continuing to issue coverage for those consumers who are interested in obtaining life insurance.
We believe it’s imperative we not panic, but rather, listen to the facts. Health care professionals strive to protect families every day in their line of work. If there are elderly or at-risk folks in your area, of course, they should do everything possible to avoid contact with infection. So, check on them, and make sure they know how to stay safe. The measures being taken nationwide now are being implemented in order to ‘flatten out the infection curve’ and ease the strain on our already inundated healthcare system.
Many insurance companies are asking applicants if they’ve been tested or treated for the virus, and then once the policy is approved, they are asking applicants to sign a statement noting that nothing about their health status has changed during the application process.
Now is the Time to Act
Those who lack coverage may want to consider moving to obtain it soon in case the pandemic impact on life insurance makes things more difficult. If the pandemic worsens, industry experts say, life-insurance companies may institute stricter guidelines for underwriting. Insurers might also increase premiums in the future as many are suffering losses amid the sharp declines in financial markets.