Protection options available during the coronavirus pandemic

During these uncertain times, now more than ever, it’s worth knowing how your cover will protect you and your family should a tragic event occur.

Here we discuss the following types of cover:

We’ll discuss why they’re important and whether existing policies could be affected by coronavirus:

Policies are taken out based on the details provided upon application. Insurers assess this information, along with other factors, such as:

  • Age
  • Whether you smoke
  • The type of cover you require
  • Existing medical issues
  • Employment status and type

You’re then offered your terms of cover – which won’t change once accepted, and you start paying for the cover.

Due to the current health scare, it’s natural you may be looking to take out life, income and critical illness insurance policies – and it is still possible to obtain cover.

Insurers have started asking about coronavirus though, such as whether you’ve tested positive for COVID-19, had symptoms or currently in/been in self-isolation.

Your existing life insurance should cover coronavirus

Whilst it’s never nice to think of, it’s good to be reminded about how important cover is and why you took it out in the first place. Ultimately though, cover is there to ensure your family has the funds to continue living in a property – or to use for other purposes – if the worst should happen.

Life insurance is usually taken out to cover a debt, such as a mortgage and/or to give the family a lump sum in the event of death. Some people also take out policies to cover funerals.

Your existing Income Protection (PHI) should cover coronavirus

Long-term income protection policies (PHI) are usually taken out for 5 to 40 years and normally up to retirement age. These policies are taken out to replace lost income in the event of long-term sickness or injury and usually start to pay out on a claim following any employer sick pay entitlement.

You’ll need to check your policy documents and check any ‘deferred period’ before a claim would be paid though, as these can be 1 to 24 months.

You can also click here to see what the Government is doing to support workers

Critical illness is very important but unlikely to cover coronavirus

It’s never nice to think of becoming critically or seriously ill and these policies – like life insurance – are also usually taken out to cover a debt. They can also provide you and your family with a lump sum to help with care or changes needed in your life or property if you’re seriously ill.

These policies are based on covering certain medical conditions and serious illnesses at the time of the application. Whilst the list is long, it’s unlikely to cover COVID-19 as it isn’t considered a critical illness. If you developed a serious or critical illness as a result of COVID-19 that might be considered for a claim.

No matter what type of cover you’d like to take out – or whether you have questions about an existing policy, we’re here to help. We’re happy to answer your queries and do our best to find a solution based on your circumstances.