It has been a hundred years since the world has experienced a health crisis on the scale of the current Covid-19 crisis. It has plunged us all into a world of uncertainty and got us all reaching for answers on all kinds of things that we never gave much thought to before. One of the questions I have faced on an almost daily basis is on how the crisis will affect life insurance policies. I have had so many queries on this that I thought I would write a post to provide some answers and hopefully reassurance.
Does my policy still provide cover?
I want to be very definitive because that is the most significant area of concern. There is no exclusion clause for global pandemics or new diseases or virus strains. You are covered.
I know we are all a bit fearful at the moment, but it is also worth remembering that the vast majority of people contracting Covid-19 go onto make a full recovery. However, if the worst should tragically happen, be assured your policy is valid and your loved ones will be able to make a claim.
Are my premiums going to rise?
If you have a fixed premium, the answer is no. That policy represents a binding contract and external events will not affect it. It is one of the advantages of fixed plans and if you are looking to take out a new policy is something you should consider.
If your premiums are subject to annual review, the question is less certain. Premiums are calculated across the global market and take into account many different factors. We don’t know yet what the outcome will be. We do know that mortality related to Covid-19 deaths is predominantly among the elderly and those with underlying health problems. It may be that life insurance claims are not significantly different from usual, but we won’t know until we have conclusive data.
What we do know is that the younger you are, the less it will affect your overall premium, which is the reason why you should obtain life cover at an early age.
Can I still get life insurance?
Several people have contacted me to ask this.
The answer is, absolutely, yes, you can’.
I am arranging life, critical illness and medical insurance for clients every day and have experienced a surge in enquiries. The crisis is focusing people’s minds on these critical financial issues. These insurance policies offer you and your family financial protection against perils and I urge everyone to get cover, not just at times like this but always.
I want cover, but I am in lockdown. Can you help?
My team and I are consulting with clients over the phone and via teleconferencing. The only difference from normal is that we cannot shake hands and enjoy a coffee together. The advice and attention to your needs remain the same. Documents can be exchanged by email. If we do require a signature, we have couriers who will deliver and pick up from you who are well briefed and understand the importance of social distancing and avoiding direct contact.
Life insurance, as well as medical and critical insurance cover, are essential protections. If you have any concerns or questions, please don’t hesitate to get in contact with me. Call me on +971 50 618 6463 or email [email protected].
Stay safe and well and remember we are here to help.