Life Insurance: Expectations Amidst the Covid-19 Pandemic
The Covid-19 pandemic is affecting the Life Insurance industry. Fortunately, those who have life insurance are covered should they pass away from the disease. However, individuals without coverage or are underinsured need to start looking at their options since insurance companies are changing the application process due to COVID-19.
Life Insurance Buying Process
Due to the outbreak, life insurance companies are asking more questions and the application process is slowing down. Getting medical records is “problematic in this COVID-19 world as doctor’s offices are notoriously slow in providing these in normal times, and right now many of them do not have what they consider non-essential office staff coming in” to help with tasks like this, says Byron Udell, CEO of AccuQuote, an online life insurance agency.
Many insurance companies consider past and future travels plans of applicants. Applicants can expect delays with their applications if they have travelled or intend to travel outside of Canada.
We can expect stricter travel guidelines in the future. Forbes.com indicates that Pacific Life, and American insurance carriers, won’t consider any applicant who intends to travel, has returned from international travel, or has had a member of their household return from international travel.
Asking About Exposure to COVID-19
Guidelines on COVID-19 may vary based on the insurer. Industrial Alliance already has a question regarding the disease on their online application. Expect insurance companies to ask questions to determine if a person has experienced symptoms related to COVID-19. Inevitably underwriting procedures will be put in place to manage applicants who have been exposed.
Most insurance carriers require a paramedical exam in order to qualify for coverage. Canadian insurance companies have currently put paramedical exams on hold. Luckily, there are companies who are offering non-medical insurance policies. This option is ideal for younger and healthy applicants.
If you would like life insurance to be part of your financial plan it would be beneficial to start the process during this time. According to Byron Udell, “things still look very good for consumers who want to get life insurance issued at pre-COVID-19 pricing and, for most folks, pre-COVID-19 underwriting rules. As this situation evolves, I believe things are going to change, making life insurance harder to get, and more expensive,” he says.