COVID-19 and No Exam Life Insurance
COVID-19 has affected so many aspects of our lives, including no exam life insurance. As a result, we get questions on a daily basis about the potential implications. Maybe you’re concerned over the possibility of a claim being denied if death occurs from COVID-19. Or perhaps you’re in the market for life insurance and you’re worried that it won’t be possible because of the virus.
First, let’s address existing life insurance policies. We have yet to come across any policy or insurance company that will not pay out a death claim due to COVID-19. Insurance policies are contracts that cannot be changed once they are in force. That means that as long as your premiums are up-to-date you have fulfilled the agreement. The insurance company must do the same. Even in the face of a pandemic. So keep those premiums current!
COVID-19 (Coronavirus) has affected the process of buying a new life insurance policy, however. While most insurance companies have relaxed their underwriting guidelines around September/October of 2020, there are still restrictions in place. If you have certain conditions that are known to increase your risk of death, should you contract the virus, your application may be postponed or declined.
Are no exam life insurance and COVID-19 a good match?
If you are healthy, then going the no exam route makes a lot of sense for several reasons. First, No exam life insurance policies are much less invasive on you. You don’t have to give blood and urine samples and get checked by a nurse. Second, you eliminate the risk that those tests might uncover something you’re not aware of. Like elevated cholesterol or blood pressure. Third, you can get your coverage much quicker than going the fully underwritten route (i.e. with an exam).
Another obvious benefit of a no exam application process is keeping your social distance. Many of our clients prefer not to have strangers enter their homes at this time. We do everything remotely with no exam life insurance policies!
If you have certain health conditions, however, it’s possible that you won’t be eligible for the no exam route. You may need to go with a policy that requires an exam, or possibly a guaranteed issue policy if you suffer from any serious conditions. This was the case prior to COVID-19, but is even more in play now.
Each situation is different of course, which is why we strongly recommend letting us give you personalized recommendations. There are so many things that can affect eligibility that trying to list them all here would be impossible.
What if you have or had COVID-19?
If you tested positive for the Coronavirus, you will be postponed for life insurance. That means that you won’t be eligible for coverage for a certain period of time. Most companies have a 90-day waiting period from the date of a positive test, at minimum. Once that time has passed you will be required to get tested again and show proof of negative results.
As you might imagine, these situations are handled on a case-by-case basis. If you had mild-to-moderate symptoms you should be fine to proceed with an application. After the waiting period of course. On the other hand, if the virus landed you in the hospital and made you very ill, it will be more difficult to get coverage. Again, the best course of action is for us to have a conversation to determine your options.
Additional steps due to COVID-19
With most insurance companies you will now have to complete a COVID-19 questionnaire as part of the application process. The questions include whether you’ve tested positive for the virus, or consulted a doctor for any symptoms. Also, most will ask if you’ve been in close contact with someone who has tested positive or been advised to self-isolate.
We are here to guide you through the process, from start to finish.
Reach out today and we can help you get started.