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How COVID-19 affects life insurance coverage

Buying life insurance during the coronavirus chaos might be a challenge. Almost every insurance company has placed at least a few restrictions to coverage in response to COVID-19.

With the science behind the virus still being debated, companies have created a safety net of coverage restrictions based on a person's age, travel history, covid diagnosis, and vaccination status. At face value, it may seem like life insurance rates will spike due to the unknown full effects of the coronavirus and its vaccines. However, the steady rise in unemployment rates over the last two years dictates the need for affordable (and flexible) insurance premiums that won't empty your wallet.

How will the vaccines affect my life insurance eligibility?

Before the coronavirus, life insurance underwriters didn't consider your vaccination history or status in the decision to issue you an insurance policy. The COVID vaccine has changed that scenario indefinitely - insurers may want to know whether or not you've received (or are thinking about getting) the COVID vaccine.

Why does the vaccine matter in the insurance process? Firstly, most insurance companies view it as a safeguard against a higher risk of dying, especially for those with pre-existing conditions. For instance, a person with diabetes or heart disease is more likely to succumb to the coronavirus or die. So, insurance companies may consider the COVID vaccine an efficient barrier in hindering the chances of death.

The vaccine, in this case, may offer a second chance at buying affordable life insurance coverage to people who would otherwise need to spend a fortune on insurance. As such, there is no indication of whether insurers will prefer the mRNA vaccines over the traditional Johnson & Johnson vaccines or vice versa. Any vaccine available in your neighborhood will probably do the trick if you do need to buy inexpensive life insurance.

Will insurers pay out death benefits for deaths caused by the COVID vaccine?

This is where it gets tricky. While manufacturers are typically held liable for producing defective products, the government has granted COVID vaccine manufacturers temporary immunity from legal liability. This naturally suggests that insurance companies will be taking on a higher risk and some may not want to allow insurance eligibility in such a scenario. However, if they do insure you, they are accepting that risk and they cannot deny death benefit claims on the grounds of the vaccine.

For more resources or free life insurance quotes, visit today.

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