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Has COVID led to higher life insurance quotes?
iQuanti: Since life insurance quotes depend on the health and life expectancy of each individual, it is difficult to analyze whether life insurance premiums have become more expensive for clients in general. However, there is no doubt that COVID has caused a growing interest in life insurance policies.
What does this growth mean for life insurance customers? And how will life insurance companies deal with COVID as it becomes an increasingly regular part of Americans’ health care concerns? Let’s take a deeper look at some of these questions.
Does life insurance cover death from COVID?
Yes, life insurance covers death from COVID. Life insurance policies generally cover death from any natural cause, as long as your health history has been accurately reported to your insurance company. This includes deaths from diseases like COVID-19.
If you purchased a policy before you contracted COVID, you don’t need to worry about whether your beneficiaries will receive a lump sum payment if you die. Since deaths from COVID or COVID-related illnesses are covered by life insurance policies, this means beneficiaries should have no problem receiving the death benefit.
How has COVID affected life insurance sales?
The Life Insurance Market and Research Association (LIMRA) has noted that life insurance sales have reached their highest annual growth in nearly 40 years. In an industry that is already huge, these numbers imply that even more growth is on the way.
While this increased demand for coverage may increase term life insurance quotes, it may also prompt companies to find a stable price point for their policies. That way, life insurance companies can continue to provide stable coverage to Americans, regardless of the changing healthcare environment.
Will I pay more for life insurance if I am not vaccinated?
The American Council of Life Insurers has stated that vaccinations will not affect premiums or death benefit payments.
Still, as with all illnesses, if you’ve experienced health problems before getting a life insurance policy, there’s a chance you’ll pay a higher amount in your premiums due to long-term complications. Most term life policies require a health exam, and if you’re not honest about your past conditions, it could also give your insurers reason to deny you coverage.
After COVID, will I be denied life insurance if I am older?
The AARP has reported that some life insurers have denied coverage to older patients during the pandemic, especially for older people who have health conditions that increase their risk of dying from COVID-19. Of course, life insurance companies are less likely to cover older customers regardless of COVID, due to mortality risk, but unfortunately, COVID has added another layer to coverage for older Americans.
However, the likelihood that an older patient will be covered depends on a number of factors, including the policy she wishes to purchase. COVID may make a bigger difference with term life insurance policies, but many insurance companies will still have options available for seniors that meet their insurance needs.