What COVID-19 Teach Us About Insurance

Everyone is at risk for getting COVID-19 if exposed to the virus. There is an increased health risk however, if you do not take proper precautions such as wearing a mask, social distancing or staying at home. But aside from health, the pandemic also has amplified the need to protect against financial risks and hardships. This is where insurance can come in.

Insurance, in simple explanation, is a means of protection against financial loss.  It takes the risk from you and puts it to the insurer, who must pay in the event of a disaster covered by your policy. Insurance comes in 2 general categories: life and non-life (ex. business or car insurance). The focus of this blog is on life insurance.

Understanding Risk

Even before the global coronavirus pandemic, life is inherently risky. There are unexpected events people will face throughout their life that they can’t predict such as death, disability, illness and hospitalization. Now, though, COVID-19 teaches us that life insurance is as important as ever.

Risk of Dying too soon

“If you were to die tomorrow, how do you make sure that the financial needs of your loved ones will be taken care of?” For anyone with a loved one who relies on them for financial support, life insurance is important. It’s the easiest solution to protect your loved ones financially.

Coronavirus pandemic raises awareness about the need for term life insurance, which pays the death benefit if you die while your policy is enforced. Most life insurance policies will cover a death from COVID-19 as long as you are honest in your application regarding your health, travel and pre-existing conditions.

Risk of Getting Critically-ill

The Coronavirus disease is said to be still evolving. Although according to reports, children and young adults usually recover without special treatment, we cannot totally assume that illness from the disease will be minor. WHO still advises people of all ages to take steps to protect themselves from the virus especially because it is with high infection rate plus there is no successful vaccine yet.

Getting treated for coronavirus comes with a hefty price tag. Therefore, getting a health insurance cover for yourself and your family can provide the added protection you need in times like these. 

Most life insurance companies have a policy with critical illness or comprehensive health benefits that cover complications caused by COVID-19 such as acute cardiac injury, acute respiratory failure, liver failure and acute kidney injury.

If you will apply for health coverage, the insurer will confirm that you do not have the virus and you have not been exposed to it since the insurance application process began. There may be medical exams you need to take if you already have existing health conditions. That’s why it’s important to apply for health insurance when you are healthy so you can simplify the process as much as possible and also get the best rate.

Managing the Risk

It has been mentioned already, that life insurance is one of the means for you to manage the financial risk brought about by COVID-19 pandemic.

So, how do you apply for a life insurance policy? The good news is, the insurance industry adapted to the new normal of social distancing so face-to-face is no longer required. You can now get covered by processing you application online. You will still need to have a financial advisor to help you provide the right policy and coverage. You can schedule a free online financial consultation with us and we can recommend the best plan for your needs and goals.

If you already have coverage, make sure you continue to pay your life insurance premiums to maintain your policy in effect. If you are having trouble making your insurance premium payments, contact your financial advisor or your company’s customer service team to discuss your situation.

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