The Effects of the Corona Virus on Your Obtaining Life Insurance

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In a recent unofficial survey a number of life insurance companies were contacted to get feedback on how they are approaching the corona virus and more specifically would they continue to take new applications. Most said if a person tested positive, they would postpone offering them any coverage until two to three months after they recovered. Additionally, most said they would not offer coverage if he had any plans to travel outside of the U.S. in the coming months.

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I’d like to share several high points of the responses I got. Please see my bold text for emphasis.

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• All companies could still accept applications from high impact areas at this time. Please note that this could change very quickly as the situation is continually changing.

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• For corona virus, if someone tests positive, or tested positive within 30 days, they are a postpone. However, once the condition resolves and it has been at least 30 days since diagnosis, we would consider not rated as long as medical records confirm resolution.

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• We are underwriting as usual.

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• We can still consider the individual at this time as long as they are not symptomatic.

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• The situation is still fluid and could change, but for now, there are no restrictions for the North Carolina/Virginia area.

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• As long as they are not infected with the corona virus we will still consider the client. Currently, we will not consider any who plan to travel outside of the USA until after June 1st.

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• Any applications requiring medical exams may be problematic. It was suggested that we call around for examiner availability before taking/submitting an application.

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• Any underwriting action would be taken based on the results of a positive test, so any positive test would be postponed until fully recovered.

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• Currently we only have guidelines for anyone who has tested positive or under quarantine .. we would postpone for a minimum of 3 mos. As this situation is fluid and changing daily, our guidelines may also change.

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• No restrictions at this time based on state of residence, but that could change at any time.

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One thing I’d like to point out is that all of the companies said they were willing to consider new applicants. None of them said they were shutting their doors to certain areas or pausing new business.

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But as my bold emphasis reveals, nothing is certain for the future; things can change.