Does Life Insurance Cover Deaths Due to Medical Conditions, such as COVID-19?

a coronavirus illustration

Life insurance provides financial security and stability to a person’s beneficiaries after their demise. The policy a person buys pays a death benefit to families for most causes of death, including accidents, medical conditions, terminal illnesses, natural causes, and pandemics—but what about conditions such as COVID-19?

Let’s find out about this.

Will Your Life Insurance Policy Cover COVID-19?

The short answer is: yes.

As long as you have a life insurance policy with a reliable insurance company, your family will get financial support should you die due to coronavirus.

Insurers can’t alter your premiums because you’ve had or have COVID-19 or because you’re at a higher risk of getting it due to where you work.

Can You Get a Life Insurance During the Pandemic?

The pandemic may be over, but it has raised a few crucial questions regarding insurance. One of them is, ‘can you buy insurance during a global pandemic?’

The answer is yes.

However, it could take longer to get insured, especially if you’re in a high-risk group or have taken a trip to a hot zone. You may also experience delays and will have to provide medical records to show that you’ve recovered from the illness before an insurer takes you on. For example, if you’ve tested positive for COVID-19 but didn’t require hospitalization, you’d have to wait six months to get insured.

a person testing for covid-19

Will You Have to Pay Anything if You Need COVID-19 Treatment?

You probably will have to. Insurers don’t pay for COVID-19 treatment but remember; the vaccines are free. Your insurance company can, however, cover the diagnostic tests needed for their members. For that, you may have to pay the upfront costs and later file a claim with your insurer for reimbursement.

What If You Have Term Life Insurance?

Term life insurance policies cover most death scenarios and provide relief to families after their loved one passes away. But many people don’t know that their insurance policy might not cover certain deaths.

A premier life insurance company like Franklin Life & Annuity will always explain all aspects of the insurance policy, so you know what the plan does and doesn’t cover.

Deaths Not Covered Under Term Life Insurance 

Some causes of death are not covered under term life insurance. This is done to safeguard the insurance provider and to prevent fraud. Below are the deaths your insurance policy will not cover:

Accidents

Most term life policies cover death caused by accidents, but the company can refuse your claim if the insured person dies after drinking alcohol or taking drugs. Policies also don’t cover deaths caused by risky hobbies and adventure sports.

Suicide

If a person commits suicide within a year of policy issuance, their beneficiaries won’t get death benefits.

Self-Inflicted Harm 

The insurer can reject the claim if a person dies due to self-harm.

Murder or Homicide

If the insured person is murdered, the claim will be halted for further investigation. If the beneficiary is found guilty, the claim will be rejected. If not, they’ll get the total claim.

Natural Disasters

In case of a natural calamity, insurers are not bound to pay death benefits. But certain life insurance agencies do cover natural disasters.

Due to STDs

If the insured person dies due to a sexually transmitted disease, they lose all benefits from the insurance policy.

Natural Death

Insurers don’t have to pay the families if the insured person died within two years of the claim due to a disease they didn’t mention when getting the policy.

Who Needs Life Insurance?

Reasons can vary, but generally, people with businesses, high-debt levels, or primary income earners need life insurance.

A comprehensive life insurance policy will ensure your beneficiaries receive death benefits if you pass away.

The proceeds can help:

  • Cover funeral and burial expenses
  • Pay off outstanding debts
  • Create a source of income for the beneficiaries
  • Help with childcare expenses
  • Provide savings for your spouse

Work with Us

Provide your family with financial stability with the help of a reliable life insurance agency like Franklin Life & Annuity today. We provide a comprehensive range of insurance services tailored to meet your unique needs. Our all-in-one family life insurance solutions include burial and final expense insurance policies that ensure your loved ones will live comfortably no matter what happens. Get in touch with us.