Over a million people globally have been infected by the COVID-19, making this the most significant public health crisis of our time.  The Coronavirus outbreak has literally put the world into quarantine, and when a worldwide event consumes the news, Life Insurance becomes a  hot topic.  The pandemic has made people reflect and realize on the importance of Life and Medical Insurance.  As expected, we see a significant rise in the life insurance and critical insurance applications. However it is noteworthy to follow the sudden flow of requests from doctors, nurses and health workers who are in the frontline fighting the virus daily.

The questions we get asked a lot currently is, how will COVID-19 (Coronavirus) affect life insurance and critical illness? Am I covered for COVID-19?

Life Insurance

Life Insurance policy is a contract which pays out a lump sum amount (death benefit) to the beneficiary upon the death of the Life Insured.  Life Insurance policies, both existing and new, does not have an exclusion for COVID-19.  In the unfortunate event of death due to COVID-19, your existing life insurance coverage (death benefit) would not be denied. It will be treated as an admissible claim under the policy.

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Critical Illness

Critical Illness benefit pays out a lump sum amount upon the insured being diagnosed with any of the Critical Illness Diseases listed in the Terms and Conditions of the policy. The list will often include around 36 Diseases such as Cancer, Heart Disease, Stroke, End-Stage Lung Disease, Blindness etc.  COVID-19 (Coronavirus) is not one of the listed diseases.  However, as an example, if the insured contracts the infection and recovers but develops permanent organ damage, e.g. the Lung, a claim can be made based on “End Stage Lung Disease” as defined in the terms and conditions as a listed Critical Illness Disease of the policy.

This virus has got us thinking not only of social distancing and getting used to working at home.  It has helped us reflect on aspects of mortality, life insurance is increasingly on the top of the mind of our clients right now, and it explains the spike we see across the business for life insurance and critical illness cover.

You can still get new coverage and protect yourself and loved ones from the safety of your home by simply choosing the right plan on BankOnUs.

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