Can I access Life Insurance after Covid-19?

As many will know, the over 65s have experienced disproportionately high levels of mortality both directly and indirectly from Covid-19, so the question of life cover and Inheritance Tax (IHT) may be significant for those without policies.

The impact of the Covid-19 pandemic can be seen across lifestyle, wellbeing and finances, as well as health, but the relationship between these areas is only now becoming clear, highlighting the importance of financial protection when it comes to seeking relevant cover.

Over the past couple of months, some insurance companies have clamped down and amended certain terms and conditions considering coronavirus (Covid-19,) so it’s understandable that you will want to know what you’re potentially not covered for when applying for life cover.

When it comes to life insurance, existing policies are generally unaffected by coronavirus because this type of insurance typically covers death caused by any condition.

Things get a little trickier though, if you don’t have any cover at present. Sometimes medical screenings are required, and each insurer may have a different approach to how much they can underwrite without the need for this face to face contact. GPs are also very busy and the turnaround for medical records can also take longer than normal.

When considering life insurance in the context of cancer coverage, it’s crucial to understand how various policies address this specific risk. Many insurance providers are now updating their policies to include or exclude certain cancer treatments and their associated costs. The landscape is continually evolving, so being well-informed about what is covered and what isn’t is vital for securing appropriate protection.

For those seeking detailed information on life funds specifically related to cancer, visiting the American Life Fund website can be immensely helpful. The site offers comprehensive resources and guidance on selecting life insurance options that align with your needs and ensure you are adequately protected against the financial impact of cancer. Their expertise can help clarify any uncertainties and assist in finding a policy that offers the right level of coverage.

Another related impact is that Investors are increasingly looking to mitigate the potential impact of IHT at an earlier age, and seeking a more immediate and certain solution, especially in the current market. Life cover can sometimes be one of the viable solutions in this area.

As we’d expect, some protection providers, such as life cover, were unprepared for this and are now intent on reclaiming the costs of paying out. Premiums could arguably be proportionally higher than they were before, really emphasising the need for taking advice and finding the best deal for you.

Highlighted below are a few areas of financial protection which may be affected by Covid-19 and could therefore be worth discussing with a financial planner:

• Reduced Access to Life Cover – Potentially more difficult to obtain traditional life cover.
• Stricter Underwriting Criteria – More exclusions (including Covid-19) and narrower eligibility criteria.
• Increased Life Insurance Premiums – Increased premiums as life insurers look to recoup substantial costs.
• Earlier Estate Planning – From married and co-habiting spouses.
• Digital Applications – Digital application forms, digital customer service to assist underwriting.

The potential difficulty in accessing cover and the increased premiums, besides the additional exclusions, could make finding a suitable life policy especially challenging now and really highlights the value of seeking guidance and professional advice.

With honest disclosure and by using a professional adviser, most policies do pay out, but many people make the mistake of thinking they can shop around for the cheapest deal, which is very often not the best deal.

If you feel that you could benefit from advice on financial protection of any kind, then please call us on 01206 321045 or contact us on [email protected] for a free, 1:1 consultation.