Insurance questions for a post-pandemic future

life insurance

It is no surprise that the coronavirus pandemic has left us all a little in shock and uncertain about the future.
It is making many stop and take stock.
For me, that has meant people taking a look at insurance and how they and their loved ones are covered against the unknown in an uncertain world.
I have had several clients speak to me about insurance in recent months for a variety of reasons.
Some are worried whether their life insurance, critical illness or income protection policy would cover them if they got Covid-19.
Others are wanting to look at how they might protect themselves better for the future in case coronavirus or something similar comes along again.
The answer to the first set was a quite simple, yes. In most cases, life, critical illness and income protection policies have been covering people who have been struck down by this terrible virus.
In fact, the Association of British Insurers (ABI), says insurers paid out £202m last year to victims of the Covid-19 pandemic. The ABI states: “If you or a loved one has to make a claim on a life insurance policy as a result of coronavirus, it would be handled like any other life insurance claim and would be paid subject to the usual policy terms and conditions.”
There is also no truth in the rumour that having the Covid-19 vaccine invalidates your life insurance. Nor does having the virus. Some insurers have delayed life insurance applications for those who are currently testing positive for the virus and asked them to submit medical evidence. The delay is short—30 days is typical—and largely applies to those with underlying medical conditions.
As to the second set of questions, it is always good to be prepared and to regularly check what insurance cover you have and what you might need, as your circumstances change.
For example, people getting married, buying a home or having children, have very different insurance needs to those with no dependents or commitments.
Taking out insurance to protect your future can be a complicated business. By way of a quick reminder of the different policy types:
Life insurance protects your loved ones financially if you die.
Income protection insurance is a policy you can take out to cover your income if you are too unwell to work. It’s a long-term policy which pays out up to approximately 65% of your gross income if you can’t work because of accident or sickness.
Accident, Sickness & Unemployment insurance is similar, but is a short-term policy which pays out for up to 24 months.
Many people think they won’t need income protection or accident and sickness cover because their employer or the government will give them sick pay. In some cases, this might be right, but in many others, you might not be able to get by, particularly if you are off work for a long time.
Critical illness insurance is a one-off, lump-sum payment that is paid out if you suffer a critical illness like cancer, a stroke, or a heart attack.
With all insurance, it is wise to get proper advice to ensure you get the right policy for your individual needs. For a free, no obligation discussion on insurance mor mortgage-related issue, please give me a call on 01723 384558 or 07767 692 653 or email me at mgrayshan@googlemail.com

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