The outbreak of the novel Coronavirus (COVID-19) is upending lives in a lot of ways.  Now more than ever, you may be concerned about your safety, providing for your family, and knowing that your family will be taken care of financially if something happens to you.  Life insurance can provide for a family financially if the primary income earner passes away.  But, can you still get life insurance during this time of pandemic?  Can you still get life insurance if you are infected with COVID-19?  We answer your questions here about getting life insurance during the outbreak.

Are Life Insurance Companies Essential?

Yes, in most states life insurance is designated an essential operation and the offices remain open.  New York, California, Illinois, and other States with shelter in place or similar orders allow insurance offices to continue operating.  You can read specific orders from your State to see if operations are allowed to continue, but chances are that you can still buy life insurance.  Even if an agent’s office is closed, some may be willing to meet from their house or work by phone.  Because critical financial services must remain open, the underwriting and claims departments of life insurance companies will also continue to function.  Paramedical examiners are nurses, so they too are considered essential personnel, though it could be debated whether or not a life insurance exam is the best use of their time and resources for society.

You can also contact an agent life Life Ant who works online and by phone, and we can assist you in getting a policy issued without meeting face to face.  In this age of social distancing, being able to work remotely is critical to keeping everyone safe.  Life Ant is doing our part.  So yes, we are open, other insurance offices are open, and you can still buy life insurance during the coronavirus pandemic.

Can you Buy Life Insurance if you Tested Positive for Coronavirus

No, you can not get life insurance if you have an active coronavirus infection.  Life insurance companies are not letting people who have tested positive for Cov-19 purchase life insurance until they have been tested and successfully prove that they are negative.  This requires two consecutive negative tests.  There is not enough known about the true mortality statistics of the novel Coronavirus given age, gender, and pre-existing health conditions for life insurance companies to be comfortable pricing these policies accurately.  Having the novel Coronavirus does not mean that you can never purchase life insurance, but you do need to successfully recover.

Are There Special Considerations During Coronavirus?

Life insurance companies are imposing waiting periods for people who traveled to high-risk places.  As the virus spreads throughout the United States, insurance companies may impose waiting periods for anyone who has had contact with someone who tested positive for Coronavirus.  It is also possible that life insurance companies will impose additional waiting periods on all new applicants, or even stop taking new applications if the pandemic becomes worse.  As always, stay healthy.  The best way to be insurable is to stay active, eat healthily, get enough sleep, don’t smoke, and keep your body weight down to a healthy level.  Learn more about the paramedical exam here.

Are Life Insurance Companies Able to Pay Out if a lot of People Die of Coronavirus?

Life insurance companies are built to be able to pay out a high number of claims that may come during times of disaster or disease.  Life insurance companies fund massive reserve accounts with profits every year, which gets invested in secure near-cash investments such as treasury securities.  During times like this, it is apparent why we always recommend that people only buy life insurance from companies with high financial ratings.  Most companies should be able to survive the pandemic just fine even though claims will be higher than expected.  They may need to draw from reserves, but this is why reserves exist.  AM Best, a life insurance rating company, is currently running stress tests on insurers to identify which are well-positioned and which companies may struggle more if Coronavirus deaths end up being significant.

Keep in mind that each State also provides certain amounts of insurance on life insurance policies, if a company goes bankrupt and is unable to pay.  Limits are different for each State, so many policies will be bigger than the insured amount.

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