Covid-19 virus danger - Businessman working at safety of home office leaving virus protective mask on desk.

An Overview of Life Insurance and COVID-19

Sadly, COVID-19 continues to wreak havoc across the country. This virus has infected more than 1.1 million people and led to the deaths of close to 70,000 people. Unfortunately, the number of infections and deaths from the novel coronavirus is likely to go up. One of the side effects of so many deaths is that countless families are going to end up in financial difficulty due to losing someone who would otherwise be providing income to the family. One of the ways that families might be able to make ends meet is through life insurance benefits. One of the most common questions people have about their policies is whether or not life insurance is going to cover death due to COVID-19. Anyone with questions or concerns should contact their insurance provider or enlist the help of an experienced life insurance lawyer.

The good news is that the vast majority of policies will cover deaths due to COVID-19. On the other hand, there are a few exceptions. It is important for everyone to note why a life insurance company might refuse to pay out due to someone dying as a result of COVID-19.

First, the insurance company might refuse a claim due to an application that was either incomplete or inaccurate. Claims might be denied due to inaccurate information such as lying about weight, income, or even travel plans. Even worse, the information in question might not have anything to do with COVID-19. If it’s inaccurate, the insurance company might try to take advantage of this loophole and avoid paying the benefit.

Another common reason for someone to have an application denied is not paying insurance premiums. In order for the policy to be active, someone has to make sure they pay their insurance premiums on time. If the policy lapses due to nonpayment and it wasn’t renewed before someone died due to COVID-19, the insurance company usually refuses to pay the benefit. If a premium is late, the insurance company will usually provide someone a grace period of 30 days to pay the missing premium. Then, the policy will lapse.

Finally, another reason why an insurance company might refuse to pay out for COVID-19 is that the policy was only an accidental death of dismemberment policy. This policy usually covers people in the event of an accident, such as a motor vehicle collision. It rarely covers illnesses such as COVID-19. If this coverage was added as a rider to a traditional life insurance policy, then the traditional policy should still cover death due to COVID-19. On the other hand, if the only policy is an accidental death policy, then this does not cover COVID-19.