As of May 6, 2020, the United States reported the highest number of deaths from any country worldwide, topping out at 259,000. Because of the coronavirus (COVID-19) being able to spread so easily and the death toll continuing to rise, it comes to no surprise that many are becoming more concerned with what their life-insurance actually covers.
Will my premium rates go up? Will my family be financially covered if something were to happen to me? Is it too late to apply and will I be denied?
It’s scary, and we get it, but there is good news.
With an active life insurance policy, your loved ones are guaranteed to receive the death benefit in the case of you dying from an illness like COVID-19. If you continue to keep your active life insurance policy current, your insurance company can’t raise the premium rates if you do happen to contract the virus. However, that’s only if you continue to keep up with your premium payments.
Keep an eye out for insurers who offer special coverage for COVID-19 or insist on raising premium payments because of the pandemic. Your rate is locked in until the end of your policy, so when insurers start trying to convince you on what they consider to be necessary raised premium payments, don’t fall for it. Your existing insurance policy should also cover death from any illness or disease, even if it is a pandemic. There should be no special coverage necessary.
Reasons for denied coverage
There also has been no change to when or how people can apply for life insurance, but there is a chance it can take a longer amount of time to be approved depending on certain circumstances such as where you live.
However, there are a few exceptions when it comes to being approved and covered. If you submitted an inaccurate or incomplete application, didn’t give information about your travel plans or how you may have contracted the virus, didn’t keep up with premium payments or only bought an accidental death policy, chances are your claims will be denied or the traditional life insurance policies will not cover the death benefit for your loved ones.
When to apply
It’s important to invest in life insurance before becoming sick. Granted, things happen, but most people under the age of 40 are in good health and will actually pay a lesser premium payment compared to those over the age of 40 or who already have an existing medical condition.
But don’t just go with the first insurance policy you see. Before you settle on one, you need to look at different companies and compare their rates and features so you can determine what would be the best deal for you and your family.
To get our help finding coverage, give us a call at 888-907-0174 or you can click here to send us a message.