According to Statistica, as of May 16, 2022, the coronavirus disease (COVID-19) outbreak has spread to almost every country in the world. Nearly 6.3 million people have died from contracting the respiratory virus. There were over one million COVID-related deaths in the United States.
And although we have life-saving medicine and vaccines to combat coronavirus, this virus is still dangerous. Deaths from Covid-19 are still possible, and those who have not been vaccinated are at a much higher risk of dying from the virus.
Because this virus is new, many people wonder if covid-related deaths are covered by their life insurance policy. So, does life insurance cover covid?
In this article, you’ll learn whether or not life insurance will provide the death benefit should you pass away from Covid-19.
Does Life Insurance Cover Covid?
The short answer is yes. Life insurance will provide a death benefit for your beneficiaries if you pass away from Covid-19. If you pass away because of COVID-19, life insurance will provide coverage.
For those who already have life insurance, you do not need to worry about anything. If you pass away due to complications caused by COVID-19, your beneficiaries are eligible to receive a death benefit as long as the policy is active and in good standing.
If you have or have had COVID-19, are at a higher risk of exposure due to your job, or have recently traveled to a virus hot spot, your insurer is not allowed to change your premiums or your health classification because of any of these factors.
According to the former chief economist at the Insurance Information Institute, Steven Weisbart, life insurance claims are typically only denied in extremely rare instances. They are typically denied for one of two reasons:
1. Either the policyholders provided information that was inaccurate or misleading when they applied for the policy.
2. The policy had expired because the premium had not been paid.
Covid And Dread Disease Riders
If the person who owns the life insurance policy develops COVID-19, the dread disease rider may or may not pay out according to the terms of the policy. If the policyholder is diagnosed with certain medical conditions, riders will pay a portion of the death benefit while the policyholder is alive. Some eligible conditions include cancer, kidney failure, heart attack, or stroke.
Therefore, the rider might not be useful unless the policy covers viral illnesses like COVID-19. According to the Society for Human Resource Management, there is one notable exception to this rule. If COVID-19 results in a medical condition that is covered by the rider, such as organ failure, there is a possibility that the rider will pay benefits.
According to the American Council of Life Insurers, statements that have been making the rounds on social media claiming that life insurance companies will not pay out on a policy if the customer has received a COVID-19 vaccine are “completely false.”
Does Getting the Covid Vaccine Impact Your Life Insurance Policy?
Life insurers do not consider COVID vaccine status when determining whether or not to pay a claim. The administration of COVID-19 vaccinations has not brought about any modifications to the claims-paying process.
However, a global health crisis such as the coronavirus may affect the application process for life insurance. This is because your current health and medical history are used to calculate your premiums.
The vast majority of people can still purchase coverage at an affordable price despite the pandemic. On the other hand, individuals who have only recently recovered, who continue to experience side effects from COVID-19 over the long term, or who have certain pre-existing conditions may experience application delays or restrictions.
In conclusion, most life insurance policies provide coverage for COVID-19 deaths.
