Coronavirus outbreak has thrown the world into disarray with vital sectors of the global economy coming to a halt. The virus has spread across the globe infecting more than 1.5 million people and killing over 90,000 people. As the pandemic shows no signs of slowing down, you might be wondering whether now is the best time to get life insurance coverage for your parents or yourself.
Well, you have come to the right place if you wish to know everything about life insurance coverage amidst the coronavirus pandemic. As it stands, life insurance sales are surging as people come to terms with the potential fallouts of the deadly virus.
Can I get life insurance amidst the COVID-19 Pandemic?
If you’ve been looking for a reason to buy life insurance coverage for your parents above 50 years, then you might as well have a solid one.
The statistic shows that older people are at higher risk of dying on contracting the deadly virus, given their reduced level of immunity. With the ever-increasing probability of one contracting the deadly virus, now may be the right time to buy life insurance coverage for your parents.
If your parents are healthy and haven’t contracted COVID-19, then the application process would be simple. The application process would be the same as the one pre-COVID-19. However this time you will have to do everything remotely from home, given the lockdown and social distancing regulations in place around the U.S.
Upon applying a life insurance policy for parents above 50 years, you will be subject to normal underwriting guidelines, but with a few COVID-19 related questions. However, you may have to pay more on premiums given the increased risk of COVID-19.
For people who have recovered from the virus or those who currently have, it is also possible to apply. However, the insurer may be hesitant to offer coverage until full recovery. Coronavirus affects the lungs in severe cases, thus one of the reasons why an insurer may be reluctant, to provide coverage.
Types of Life Insurance You Can Buy For Your Parents during COVID-19
While you can get any life insurance coverage for your parents, it is important to note that some policies might be well suited for navigating the coronavirus pandemic.
Term Life Insurance
Term life insurance might as well be the best life insurance policy for your parents amidst the COVID-19 epidemic as opposed to permanent life insurance. The fact that this type of policy s designed to last several years or decades would be perfect for lasting the coronavirus.
A term life insurance policy could prove to be affordable during challenging times. Should it run out of coverage, before the COVID-19 pandemic, all you will have to do is reapply? However, you might have to contend with some strict underwriting until the epidemic eases off.
Factors that affect life insurance premiums amidst COVID-19
While preparing to take life insurance coverage for your parents, you need to be aware of some of the factors that might affect the number of premiums you end up paying for coverage. Age is one of the factors that an insurer is likely to take into consideration according to over50lifeinsure.com. If your parents are above 50 years, you might end up paying much more, given the increased risk of death, should they contract the deadly virus.
Gender is another factor taken into consideration when computing the number of premiums. Currently, men have proved to be more susceptible to dying on contracting the virus as compared to females. Conversely, if you are taking coverage for your father who is above 50 years, then you might be hit with a much higher charge.
Current health and family medical history is another thing that an insurance underwriter is likely to look into while drafting the life insurance coverage policy. If your parents have underlying illnesses or bad medical history, then it might be hard to secure coverage.
Insurance companies have already started factoring in the increased risk of death due to the coronavirus. For people who took life insurance coverage much earlier, there is nothing to worry about, as agreed rates stand and unlikely to be affected.
However, for people planning to take life insurance coverage amidst the pandemic, higher rates are a possibility. Economic fallouts, as well as the adverse effects from the influx of deaths due to the coronavirus, is already forcing insurers to reevaluate premiums when it comes to new applications, especially for older people above 50 years.
That said, now may be the best time to take life insurance coverage as they appear to be highly underpriced, given the increased risk of death amidst the coronavirus pandemic. The value that the insured is getting for a dollar of life insurance premium is currently much higher than it is usually is.
If you had taken life insurance coverage for your parents before the coronavirus pandemic, then you need not worry a bit. The insurance company is obligated to pay should your loved ones die of coronavirus.
However, for people planning to take life insurance coverage for their 50-year-old parents amidst the COVID-19 pandemic, things could be different.
Some insurance companies are offering life insurance policies while excluding deaths from coronavirus. That said, it is important to ask whether the insurance company would honor life insurance coverage should death arise out of coronavirus.
Given the number of insurance companies in the market, you are sure to find insurers willing to offer life insurance coverage without excluding deaths caused by the deadly virus.
Coronavirus has affected the way people live their lives with things looking bleaker by the day. With the value of each dollar in a life insurance premium looking a lot higher than before, now may be the best time to take a life insurance coverage for your parents.