Questions on Whether Insurance, Income Protection and Critical Illness Covers will Pay Out During the Coronavirus Pandemic
Are you a person who has bought an insurance policy that promises to protect your health, critical illnesses and income protection? Then you’re not alone. These are highly popular policies that many of us buy for the comfort and peace they offer. In the event of a major issue, then we can count on them to payout. When we need their help, these policies promise to be ready to help us. But will they actually be there to provide the assistance we’ve paid for?
The Coronavirus Pandemic & Travel Insurance
The coronavirus has struck around the entire world, causing havoc and major changes to travel plans for many people. In the midst of this major hit to the travel industry, travel insurance providers, understandably, want to protect their businesses from heavy losses. As a result, they’ve now stopped selling their travelling insurance products to new customers.
While this is the case with travel insurance providers and their insurance products, what about other types of insurance?
Other Types of Insurance are There for You
Even though we’re in the midst of the coronavirus pandemic, there are policies still available for purchase that will payout. If you’re shopping for insurance coverage, then be sure to read through the entire terms and conditions section. You want to ensure you completely understand what’s covered or not before signing on the dotted line.
It’s extremely important to understand what the policy covers every time, but especially during a global pandemic or other extreme circumstances. Don’t let the current times keep you from buying the insurance protection you need—just be sure you know what’s covered or not.
Life Insurance & Critical Illness Insurance Protection
If you’re in the process of buying insurance, or if you already have a policy, you can find the answers to your questions about how the policy works in regards to the coronavirus. Simply visit your insurance provider’s website for answers in the FAQs section, you call and speak to a knowledgeable agent to find the answers you need.
Be aware that if you’re in the process of applying for life insurance, the insurance provider may ask you about any recent travel. Depending on your answer, they may postpone your application until they believe you’re not at increased risk of health issues due to the coronavirus. However, this may vary, depending on the guidelines and specifications of each policy and each insurance provider.
For some critical illness policies, some insurance providers will not payout due to the coronavirus. The reason is that the virus is not an illness that’s specified by their policies. In addition, most people who come down with Covid-19 will only have a mild illness and go on to a full recovery.
For those who become infected and develop a serious version of the coronavirus infection, they may be able to make a claim. This, however, depends on each specific policy and what it does or doesn’t cover.
If someone contracts the virus and dies, their life insurance policy should payout. Again, this will vary between insurance providers and what’s specifically covered (or not) in each insurance policy.
What About Income Protection Insurance?
With the advent of the current coronavirus pandemic, insurance providers have seen an increase in the number of people who are interested in income protection insurance. This is not a huge surprise. The pandemic has caused economic problems around the globe, leading some businesses to lay off employees, contractors and more.
As a result, some insurance providers have begun “adjusting” what their policies cover in regard to the coronavirus. It’s imperative to read through the terms and conditions, and even the FAQs if you already have a policy or are looking to buy a new income protection policy. You need to understand exactly what’s covered during this difficult time.
If you already have an income protection policy and have been laid off or have been told to self-isolate from home, then you should go ahead and try to make a claim as soon as possible.
Right now, insurance policies such as payment protection, mortgage payment protection, income protection and other types of unemployment protection insurance take time to process. And chances are there’s a waiting period on your policy, which must be completed, before you can qualify for payment. Keep in mind that some policies require a minimum of four weeks off before they begin paying out. So, if you’re told to self-isolate for two weeks, then your policy probably won’t payout, as the minimum time off has not been completed.
What About Wedding Insurance?
This will be a difficult year for those who are planning weddings, there’s no getting around that. Many wedding insurance providers have already stopped selling new policies due to the current pandemic. They want to see what happens before they’re willing to accept new wedding coverage applications.
Other insurance providers may not pay out unless there’s a reason beyond the control of the couple planning the wedding. For instance, the payout may still come after a venue is forced to close or due to government-mandated stay at home rules.
If you already have a wedding insurance policy, now’s a great time to call the insurer and ask about the policy and see what they may payout for. They may also advise you to cancel the wedding and make a claim. It just depends on the insurer.
Hard Times for Insurance Providers, Too
It’s a difficult time for us all, but also challenging for insurance providers. Insurers stand to lose a great deal to the Covid-19 pandemic. There’s a fear that the problems caused by the virus, with insurers refusing to payout in some instances, that some customers may lose their trust in the insurance providers. They may choose to forgo insurance coverage altogether, which would be a huge blow to the insurance industry as a whole.
Experts say that the insurance industry will need to work hard to overcome low consumer confidence after the pandemic. Plus no one knows how long the current situation will last, making this a huge challenge for insurers.
If insurers are unable to improve the confidence of their customers or potential customers, the entire industry could fall on very hard times now and on into the future.