We are currently in uncertain times and still trying to tame the coronavirus outbreak. Schools, restaurants and other public places are closing down, while hospitals are preparing to treat thousands of patients who have or may contract the virus. In these unsettled times, we are reminded of our mortality and many are considering life insurance as the responsible and necessary step.
However, can you buy life insurance during coronavirus COVID-19? We’ve had many questions and we wanted to provide you with the answers.
If you have a question we did not cover, please feel free to reach out to us. You can complete the quote form on the page, leave a comment or simply give us a call. We are in this together.
Can you buy life insurance during coronavirus?
We will get straight into it.
Yes, you can still buy life insurance BUT….
Your medical exam would be postponed for at least 2-3 weeks out.
As we are writing this article, many of the labs have informed us that they would be postponing exams and even closing locations for a minimum of 2 weeks. As of today, this puts us in the first week of April 2020. What does this mean to you? It simply means, that even if you successfully submit your life insurance application, you won’t be able to complete the medical exam for several weeks. In other words, you would not be able to finalize the application and therefore have your policy issued.
Companies will pay close attention to your past international travel and immediate travel plans
The question about foreign travel has always been a part of the underwriting process. Now, more than ever companies are paying close attention to your travel history and future plans. Many carries are postponing applications for a minimum of 30 days if you have recently returned from an area that is considered a hot zone for the outbreak. Currently, the countries they are monitoring are China, Iran, Italy and the Republic of Korea. However, with the rapid expansion of the virus, we believe that the list will only grow.
If you had just returned from an international trip, expect to have your application postponed. In addition, you could be asked to provide a clean bill of health and a negative test for coronavirus.
Watch out for coronavirus exclusions
As the virus spreads, we’ve received notifications that some carriers are adding a coronavirus exclusion to their policies. This means that should you pass away from the coronavirus or complications due to it, the company would not payout.
Before you get alarmed, we want to inform you that:
This is an exception amongst companies, not the rule. Most of the carriers do NOT exclude coronavirus from their new policies
The companies that have added the exclusion, are only referring to new applications. Existing policies will not be changed.
Even though the exclusion will be placed by only a few carriers and it may not directly impact you and your application, we wanted to bring awareness and keep you informed.
What can you do?
We strongly urge you to consider a no medical exam life insurance policy. There are several types of these products and they are offered by various companies.
In addition, more companies are considering “loosing up” their guidelines in order to get more clients approved without a medical exam. This makes it a perfect time to apply for coverage.
Why No medical exam is a better option for life insurance during coronavirus?
There are several reasons why we believe this is a great solution for many of our clients.
It limits interactions
You could secure a life insurance policy from the convenience of your home. The application will be completed entirely over the phone or you can even self-complete. You will not have to see a nurse or meet with an agent face to face.
You don’t have to wait for the closures to end
As we mentioned above, many of the labs are either closing or working reduced hours to reduce spreading the virus. By purchasing a no medical exam life insurance, you can bypass that requirement and have your complete application assigned to an underwriter for approval, without an exam.
No medical exam policy is processed much faster on average than a fully underwritten application. There are policies that could be approved instantly or within 48 hours of submission.
Securing a policy with no medical exam eliminates a step in the process. This makes buying life insurance much more convenient and enjoyable (well, the last part may not be 100% true).
Some carriers offer living benefits
This is an added bonus to many of the no exam life insurance carriers. They have living benefits build into their products. If you are not sure what exactly are living benefits, we’ve dedicated several articles outlining this feature.
Highly rated carriers
We just wanted to point out that many of the carriers that offer no medical exam life insurance are highly rated and have A rating or better for financial strength.
During this pandemic, the demand for life insurance does not decline, it is quite the opposite. People are reminded of their mortality and want to make sure that their families are protected. However, there might not be many options to secure life insurance during the coronavirus due to the closure of diagnostic centers, foreign travel guidelines and etc. Therefore, we strongly urge you to consider protecting your family with no medical exam life insurance. It is convenient, affordable and it limits social interaction.