Under the Corona Virus Pandemic, You Need to Know These about Insurance

The corona virus has made many people aware of the importance of life insurance for family protection. Data from life insurance brokerage firms shows that the demand for life insurance is increasing and that the number of web searches for life insurance is skyrocketing.

However, due to the obligation to maintain social distance, it is difficult to follow conventional procedures for taking out insurance policies, and insurance companies are more careful when providing insurance to certain people faced with greater medical risks. As insurance companies learn more about this pandemic, the insurance buying process, prices and rules are changing rapidly. Here are the answers to some key questions about buying life insurance now.

Can healthy people get life insurance now?

Yes. Most insurance companies have not changed the premium rates for healthy people, although some companies are expected to increase their premiums in the coming weeks. Because of the coronavirus, several insurance companies have increased the restrictions on certain groups of people. People with other health conditions now find it difficult to get insurance, and some insurance companies stop issuing policies to people over the age of 70, even if they are in good health. Some insurance companies have stopped selling policies over 30 years, but this change is more due to low interest rates rather than coronavirus.

If you have been abroad, wherever you are, most insurance companies require that you wait at least 30 days before purchasing insurance. If you are planning to travel abroad, you should generally submit your request 30 days after your return.

Do I still need a nurse to take the medical examination when applying for insurance?

If this can be avoided, it is not necessary. Under normal circumstances, most life insurance companies must undergo medical examinations. The nurses go to the applicant's home for blood tests and other tests, and inquire about their medical history. During the coronavirus pandemic, physical exams are difficult to do in person, more and more insurance companies are starting to offer insurance policies that do not require medical examinations. You must answer additional questions about your medical history on the application form, and the insurance company also uses other methods to assess your risk, such as prescription drug records, information from the previous application d Life insurance from the Medical Information Bureau (MIB), recent The history of your doctor's visits and your driving record. Some companies use credit scores, while others use black box-type "risk scores" aggregated by Big Data companies such as TransUnion or LexisNexis.

Do you have to pay higher premiums for policies that do not undergo a medical examination?

Not necessarily. In the past, the premiums for policies that did not require a physical exam were much higher. However, as insurance companies use other resources to assess risk, prices have become more competitive. In fact, under certain ages and policy amounts, companies that do not require a medical examination currently have the lowest rates. Coverage for non-medical insurance companies generally ranges from US $ 100,000 to US $ 1 million, and coverage for older claimants is lower.

Can people with coronavirus symptoms or a positive COVID-19 test get life insurance?

Not now, but the rules vary from company to company and are constantly being adjusted. Those with new symptoms of the crown or a positive COVID-19 test must be asymptomatic within one month before some insurance companies can start covering their policies. Once they have fully recovered, and as long as there is no lingering underlying condition, there is nothing to prevent them from obtaining protection.

Some insurance companies require that people who have been in contact with COVID-19 must wait at least 30 or 90 days before taking out insurance. It can be difficult to prove contact, but if someone living with you has a positive COVID-19 test, it is difficult to get protection.

If I buy life insurance through my employer and I am now unemployed, will I also lose life insurance?

It's possible, but you have a few options. If you only take unpaid leave, your employer can keep your insurance for a certain period. Some insurance companies say they will allow employers to continue providing insurance to employees during vacation or temporary layoffs for a period of two to twelve months. If the protection you get from your employer ends after you are laid off, you can convert the term life insurance policy to a life policy, which can be kept after you leave. But the increase in premiums can be astronomical, and for those who are laid off, the conversion option is generally not the best option. Some policies offer a "portability" option that allows you to switch to your regular insurance policy, which is priced lower than the price of converting a policy for life, but if you are in good health, this may be more expensive than buying an insurance policy yourself More expensive.

What if the premium cannot be paid due to the economic downturn?

Please contact your insurance broker and insurance company to understand your options. In the coming months, many insurance companies will offer more flexibility in payment. For example, some insurance companies have suspended the cancellation of unpaid premium policies until the end of June 2020 (applicable only to policies issued before the end of March 2020 and paid the first premium). Insurance companies hope that no current policyholder will lose their life or long-term care insurance due to the financial hardship caused by COVID-19. After the end of the period, all unpaid items must still be paid, otherwise you risk losing your protection. "

If I have permanent life insurance, can I use the cash value as an emergency fund?

Yes. If you already have a life insurance policy, you can borrow most of the cash value at any time without submitting a loan request. The loan will not affect your credit rating, you can usually get the money within 48 hours. Life insurance for life offers great flexibility, it accumulates the accumulated cash value and can be obtained very quickly anytime, anywhere and in any way. Police loans are especially useful for small business owners who need additional cash to run their business over the next few months. You have to pay interest on the loan, but there is no repayment schedule. If you die before paying off the loan, the balance will be deducted from the death benefit.