Share this article

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.

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.

Covid mortality rate

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.


If you would like to know more about how we as Financial Advisers can help you secure peace of mind by ensuring your family are well protected in all eventualities  then visit the Protecting Your Family section of  our website: Protecting Your Family or send us email at: [email protected]

The information contained in our website is for guidance only and does not constitute advice which should be sought before taking any action. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occurred in connection with the content hereof and any such action. Professional financial advice is recommended for every case.

Fiducia is a multi award-winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border.

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority.. FCA No. 408210