COVID 19 is impacting everyone. A common worry is the impact to children, a spouse, or loved ones if a member of the family dies from the coronavirus. Having a life insurance plan in place can help settle some worry, but this is, understandably, a stressful time for many reasons.
Existing Life Insurance Plans
If a life insurance plan is already in place, the existing plan will cover death resulting from the virus. It is important to maintain your coverage if at all possible.
New or Increased Coverage
For those who need life insurance or feel additional coverage is needed, now may be a great opportunity to buy what is needed. Current plan pricing still reflects pre-COVID-19 rates and many insurance companies have actually loosened underwriting requirements to help individuals get the insurance coverage they need.
For those interested in applying for insurance coverage, here’s what you can expect.
- A non-invasive process, most insurance carriers have the ability to use electronic signatures so in-person meetings are not required.
- During the application, there may be specific questions about the virus, such as, “Have you been exposed, or have you had the disease and recovered?” If yes, the application may be postponed for 30 to 90 days to wait for proof the applicant does not have the virus.
- There may be questions related to recent travel, including cruise ship travel, international travel, and travel to U.S. coronavirus hotspots like Washington, New York, and New Orleans. Travel to areas with high infection rates will likely postpone coverage.
- Medical exams may be waived, depending on size of the death benefit and the type of insurance policy.
- When necessary, the insurance carrier will reach out for medical records, which may take longer to obtain due to a reduction of administrative staff. But this is nothing to be worried about.
Before selecting a life insurance plan or carrier, it’s important to consider the financial strength of the insurance company. Insurance companies are well capitalized and manage their insurance business to protect themselves and their clients from catastrophic events, like a pandemic. All carriers HKFS works with are highly rated by the major rating services.
Please know, the challenges insurance companies are facing due to this pandemic are very fluid. It’s possible insurance companies will increase their rates and/or drop product offerings due to the market volatility and the reduction in interest rates. Working with your HKFS financial planning consultant and the HKFS insurance team helps ensure a smooth process. Our experts know what each carrier requires and can help find the best coverage and pricing for your situation.