Covid-19 has affected many of our lives in ways none of us expected – but just how has it impacted Life Insurance? Read our short guide below to understand the impact.
According to a recent survey from Vitality of 2000 consumers, one in 10 (10%) said one of the biggest life lessons to come from the coronavirus pandemic is the need to protect themselves and their family’s future with life insurance. More importantly, it also found that three in five (59%) had realised that life is too short and that anything can happen to them or their families.
More than a third of people said that the pandemic has made them more aware of the need for life insurance, rising to more than half for those aged between 25 and 34.
The coronavirus pandemic has changed our lives indefinitely, but how has it impacted taking out insurance? More specifically, how has it impacted taking out life insurance?
“Are claims being rejected because of coronavirus?”
“Are premiums more expensive because of coronavirus?”
“Do I need to answer more medical questions?”
These are just a few questions you may be asking when it comes to life insurance but let’s look at the answers in a bit more detail…
“Are claims being rejected because of coronavirus?”
LV, one of the biggest insurers in the market, have recently brought out their claim statistics for 2020 which shows that they have paid out 99% of all life insurance claims in 2020. The total value of these claims adds up to over 72 million pounds!
Over 10% of claims were for COVID-19 which was the third most common cause of claim for life insurance with a total payout of £6.4 million.
“Are premiums more expensive because of coronavirus?”
The pandemic will have long lasting effects on our lives but thankfully, we haven’t yet seen a significant increase in premiums for life insurance.
If you have a policy in place which has guaranteed premiums, it means that the premium you pay will stay the same even as you get older.
“Do I need to answer more medical questions?”
To be accepted for most types of life insurance, you will need to complete the chosen insurers medical questionnaire to determine whether you will be accepted or not.
Since the pandemic, there have been some questions added relating to coronavirus but is mainly concerned with whether you have had the virus in the past few months and whether you have fully recovered or not.
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So, in summary:
- Claims for Covid-19 are being paid.
- Premiums have remained steady and largely unaffected.
- You may be asked more medical questions on Covid-19 but if you have recovered from Covid-19 this should not affect your policy.
A-Plan have a team of qualified Life insurance experts ready to help you. Please call us today on 0800 172 172 or click here to get a quote.