Has Covid-19 Made Getting Life Insurance More Difficult?

As people face uncertainties about their finances due to the global economic downturn after the COVID-19 outbreak, it’s natural for more people to consider the relevance of life insurance in the current situation. Does coverage apply to a death caused by COVID-19? Has life insurance gotten more expensive? Should I apply for life insurance now? How difficult is it to get a life insurance policy (if I need one)?

In this article, we did our best to provide context and clarity to all your queries related to life insurance and coronavirus. If you have more questions, our life insurance professionals are happy to help.

Does Life Insurance Cover Coronavirus (COVID-19)?

Yes. Unless you already were diagnosed with COVID-19 or recently traveled to an area under a travel advisory and didn’t disclose that when you applied, your policy will cover you if you pass away from a pandemic-related illness. If you already have life insurance in place, you’re covered, because life insurance companies cannot change the terms of coverage for active policies.

Is it More Difficult to Apply for Life Insurance During COVID-19?

According to the 2021 Insurance Barometer study, 36% of Americans said they planned to purchase life insurance this year. For the second consecutive quarter, this purchase intent translated into strong sales results.

In the first six months of 2021, the total number of policies sold increased 8%, compared with prior-year results. This is the highest policy sales growth recorded since 1983, according to LIMRA’s Second Quarter U.S. Individual Life Insurance Sales Survey.

So, if you are still wondering whether you can buy a life insurance policy during the COVID-19 pandemic, the answer is yes—insurance companies haven’t stopped selling policies.

The good news is that despite the virus, very little has changed for life insurance, especially in terms of premium pricing. However, for those who have traveled abroad recently or have plans to travel, the application process may be a bit more difficult or lengthy.

Other than this, the areas of investigation for eligibility remain standard when looking for any kind of life insurance. Getting coverage is just as simple as it was before COVID-19. Your eligibility can be affected by many factors including not only your medical history and existing health conditions, but also your lifestyle choices, credit score, and even your driving record.

Traveling to a High-Risk Area Could Impact Your Approval for Coverage

Questions about where you have traveled or are planning to travel have long been a part of the life insurance application process. That’s because the cost for life insurance coverage is based on risk analysis, and travel to some countries, such as those deemed dangerous by the U.S. Department of State, could mean higher premiums.

That’s especially true now. During a pandemic, international travel remains a high-risk activity. Planned or recent travel in some countries with large coronavirus outbreaks could mean a denial or a delay in gaining life insurance coverage.

Although delays and added scrutiny may be inconvenient, it’s important to be honest when filling out your life insurance application, both about your health history and travel, global pandemic or not. If you are giving true information, you will never have to worry about a claim being denied for any reason.

Changes in Underwriting for Older Consumers:

Experts say that life insurers can’t deny insurance claims due to Covid-19, but many carriers have restricted underwriting for some groups who are at greater risk of death if they contract the virus.

According to a news report, companies including Mutual of Omaha Insurance and Penn Mutual Life Insurance have suspended applications for individuals aged 70 or older temporarily. Some insurers would also impose tougher rules on those over 60 who might have got coverage before but had underlying health conditions like diabetes and asthma, which makes them more vulnerable should they get the coronavirus.

Life insurance premiums are now much higher for older people, with a 60-year-old woman paying over six times more than a 40-year-old for a $250,000 policy, according to an online brokerage firm.

Life Insurance for Young

Life insurance is now attracting young customers. LIMRA’s survey shows that 45 percent of millennials said they are more likely to buy life insurance because of COVID-19.

This increased interest could be explained by the fact that Millennials are currently at the prime age for establishing families, so a life insurance policy can help with income replacement. They may also have higher amounts of outstanding debts like mortgage, credit card, and student loans to cover if they die. 

Younger workers also faced higher unemployment rates throughout the pandemic compared to older workers, so they may have purchased individual coverage to make up for the loss of employer-sponsored policies.

And lastly buying life insurance is now easy – thanks to the advancement of technology. When you use a digital online platform like LifeQuote, you can quickly compare multiple providers for different types of life insurance at once and get a quote estimate by filling out quick information like your age, gender, zip code, desired coverage amount, and policy length. Get started here.

Do I still need a medical exam to get life insurance during coronavirus?

Not necessarily. No medical exam life insurance is a type of purchasing process that allows you to skip the usual physical exam required for traditional life insurance processes. You will, however, be required to provide answers to a number of questions about your health status, and other lifestyle and financial details for the company’s accelerated underwriting requirements.

With a no-medical exam policy, you will experience a faster and easier application process for those applicants who fit the profile. In fact, there are some no medical life insurance products that guarantee coverage, regardless of health status, but those are usually for lower coverage amounts.

How Can I Buy No Medical Exam Life Insurance During the COVID-19 Pandemic?

COVID-19 might have affected the traditional life insurance process, but it has not impacted the easy access to life policies without a medical exam. As long as you can afford the premium, and meet the specific criteria delineated by the provider, you might qualify to become a no medical exam life insurance policyholder within days.

The flexibility and accessibility of no medical exam policies may streamline the process for many and provide the needed coverage you desire. To be safe, we always recommend that you consult a trusted life insurance agent when shopping for a policy.

Why You Should Buy No Medical Exam Life Insurance Coverage?

Apart from the ease and speed of the application process, plus the security you get with no medical exam life insurance, these policies contain the same benefits as the “normal” medical exam policies such as protecting your family financially by providing a death payout if you die unexpectedly. This payout can satisfy their various financial needs such as medical bills and final expenses, settling outstanding debts such as credit card bills as well as paying off student loans and mortgages.

Is Now a Good Time to Get Life Insurance?

The reduction in life expectancy is set to increase life insurance premiums in the coming years. As people are living for fewer years, premiums will need to be spread out over a shorter duration, thus increasing yearly fees. Insurers may also wish to increase premiums if they are expecting to be hit with a wave of claims from customers. That said, this is the best time to purchase life insurance. Lock in your rates while you are still young and healthy.

While there are many unknowns regarding the ongoing coronavirus outbreak, getting a life insurance policy with low premiums is the best gift you can give yourself and your loved ones. It provides peace of mind that your family is financially protected in a worst-case scenario. Preparing for the unthinkable is never an easy conversation, but it is a necessary one in our ever-changing world.