Coronavirus life insurance

The COVID-19 pandemic has had a huge impact on our daily lives.

From wearing masks to working from home, everyone is slowly adjusting to the ‘new normal’.

Many have also had to make adjustments to their financial planning and have been looking to secure the right financial protection for their loved ones during these uncertain times.

In this article, we’ll put to rest many common myths surrounding Coronavirus and life insurance, as well as help you understand your life insurance options.

Keep reading for our full Coronavirus life insurance guide…

Yes, Coronavirus can be covered by a life insurance policy.

If you have an existing life insurance policy, you’ll be covered for death due to Coronavirus as per the terms and conditions of your policy.

New policies taken out will also cover death due to Coronavirus but claims may be liable to the contestability clause.

This is a clause written into the policy that allows insurers to request more information about the death.

If you pass away and your loved ones make a claim, insurers may look into the death to see if Coronavirus was present at the point of application.

If it’s found that the policyholder knowingly had Coronavirus at the point of application but didn't disclose this information, a pay out will be denied. This is known as 'non-disclosure'.

When it comes to life insurance, honesty is always the best policy.

It’s unlikely you’ll be declined for having Coronavirus and it’s completely possible to secure affordable cover after your postponed period has passed.

If you have any concerns, a member of our friendly team can talk you through all of your policy options.

Yes, it’s possible for a claim to be made on your life insurance policy if you pass away due to Coronavirus.

There’s no life insurance product called ‘Coronavirus cover’.

However, a standard life insurance policy can cover death due to Coronavirus (as well as many other causes of death).

Typically, there are four main life insurance options you can choose from.

These include:

1. Level term life insurance
2. Decreasing term life insurance
3. Whole of life insurance
4. Over 50s plan

Insurers aren’t currently adding Coronavirus as an exclusion on any new policies, so if you take out any of the above policies, you’ll be covered for death due to Coronavirus (as long as all the information given at the point of application is correct).

Our award-winning team are just a phone call away and will be able to take you through the whole process of securing life insurance, as well as answer any questions you may have.

Why not get in touch for your FREE quotes?

If you’re a key worker, it’s likely you’ll receive some form of cover in the form of an employee benefit (such as death in service).

This will pay out a percentage of your salary should you pass away during your employment with an employer who offers this benefit.

For example, NHS employees who contribute to the NHS pension scheme will have access to death benefits.

During the COVID-19 pandemic, the Coronavirus Life Assurance Scheme was introduced for NHS keyworkers.

This offered £60,000 to the families of frontline workers in this scheme who pass away due to Coronavirus.

Although this scheme has now come to an end (as of 31/03/23), claimants have until 30/09/23 to submit claims for deaths that occurred while the scheme was active.

A personal life insurance policy can help to add an extra layer of protection to ensure all costs are covered for your loved ones.

While death in service and the Coronavirus Life Assurance Scheme offer generous pay outs, it’s unlikely they would cover large expenses such as paying off the mortgage in full.

A personal life insurance policy could help take care of these large costs and ensure your loved ones can pay the rent or mortgage and remain in the family home.

Read our full life insurance for NHS nurses to find out about all of your options.

Critical illness cover is an additional layer of protection that can be added to a life insurance policy for an additional cost.

It will allow you to make an early claim on your policy if you’re diagnosed with a life-changing illness.

Unfortunately, Coronavirus won’t be on the list of illnesses covered by a critical illness policy.

However, if you’ve had Coronavirus which has lead to other complications (such as lung failure, respiratory problems or heart problems), some insurers will allow you to make a claim for this illness (if the illness is listed within your policy).

Each insurer will have a different list of illnesses that they cover within critical illness cover, so you may need to check your policy terms and conditions.

As well as life insurance, you may want to take out additional layers of protection. You may want to consider:

• Income protection
• Travel insurance

Income protection is a form of financial protection that will make regular income payments if you’re unable to work due to sickness or injury.

These payments will often be a percentage of your salary and they can help to ease financial stress if you’re unable to work for a prolonged period of time.

This can be especially beneficial for those who are self-employed and who won’t experience sick pay from an employer.

If you need to make essential travel trips abroad (for business or personal reasons) travel insurance is essential in protecting you should you fall ill with the Coronavirus (or any other illness) while you’re away.

Travel insurance will help to cover medical expenses such as hospital visits and treatments so you won’t be left out of pocket having to pay for expensive medical care in a foreign country. This isn’t something that’s currently available through Reassured.