Will Life Insurance Pay Out If I Get a Virus?

As coronavirus continues to dominate the world’s news and people are becoming increasingly concerned about the risks of the virus, individuals and businesses are trying to identify ways to protect themselves, both from a health perspective and a financial one.

Becoming seriously ill from any virus or disease can take a huge toll on your personal and professional lives, often leaving you unable to work and even having a higher chance of passing away. Life insurance for coronavirus has become a more popular topic as people are looking for ways to ensure loved ones are looked after in the event of being diagnosed.

Life insurance is one of the largest areas that will feel the full force of coronavirus, as the death toll continues to rise. For this reason, it is important to understand what life insurance options you have if you are hoping to protect yourself financially.

There are a number of different types of life insurance and it is key that you understand which cover types can help you in the event of coronavirus.

Can you get life insurance if you have coronavirus?

Cover such as life insurance and income protection are usually equipped for events such as pandemics, so it is likely that your policy will cover coronavirus, as long as you had the policy before you fell ill.

At the time of writing this article, most providers are not asking directly whether you have coronavirus. However, the majority of providers may postpone your application if you are awaiting any medical tests or investigations. You may wish to use an insurance advisor to help you fill out the application form accordingly.

In some cases, some of the most well-known insurance providers are offering advice on getting life insurance with coronavirus. For instance, it is important that you tell your provider if you contract coronavirus, as it is classed as a change of health. This is key to ensure your cover is still valid.

You may not be offered cover if you are planning to visit a high-risk area.

If you have coronavirus, will your life insurance pay out?

If your application for life insurance was honest and factually correct the time of applying, the policy should offer a pay-out even if you contract coronavirus.

Life insurance cover is designed to pay out a lump sum if you pass away. For that reason, if you were to pass away from coronavirus, your life insurance policy will provide a pay-out for your loved ones.

Will critical illness pay out if you get coronavirus?

Critical illness cover is designed to protect you against a set list of predefined conditions. As coronavirus is a new illness that we still do not know much about, it is unlikely that a policy of this kind will cover the virus.

At the time of writing, COVID-19 is not listed as a specified condition with any of the major providers.

Will income protection pay out if you get coronavirus?

Income protection can be helpful if you need to take time off work due to illness. This type of life insurance will usually cover a percentage of your income to offer financial support during times of serious illness. Generally, people defer the cover until their sick pay or other benefits have stopped.

Income protection will pay out if you are incapacitated through illness or injury, after your specified deferred period. In theory, if you are diagnosed with COVID-19 and are off work for longer than your deferred period, the policy will pay out.

Protecting yourself from coronavirus

It is not easy thinking of the worst case scenarios and it is probably not a conversation you have had with your loved ones. However, the outbreak of coronavirus might make you think again about taking out life insurance if you have not already. If you are hoping to ensure your family is looked after financially if the worst happens, get in touch with our team to find the right life insurance policy for you.