Will coronavirus affect me buying life insurance?

I’ve never worried about life insurance but I’m now considering it because the pandemic has made me think about my own mortality.

I had Covid-19 recently and I’ve suffered some damage as a result. I’m not really sure if this problem will be ongoing or not, but it’s certainly going to affect me for a while.

I’d like to apply for some life cover, but I’m worried about whether I’ll get a good deal. Are there any life insurers that specialise in this type of insurance?

Angelique Ruzicka from This is Money replies: Over the past couple of months insurance companies have clamped down and amended certain terms and conditions in light of coronavirus (Covid-19) on cover such as business interruption, travel and car insurance.

For instance, many travel insurers have stopped selling travel policies or no longer offer policies which cover coronavirus cancellation. So, it’s understandable that you want to know what you’re potentially not covered for when you apply for your life cover.

When it comes to life insurance – there’s no policy specifically effected by coronavirus because this type of insurance typically covers death caused by any condition.

Things get a little trickier though, if you don’t have any cover at present. 

 Ben Burgess, senior adviser at LifeSearch points out: In short, it depends what the ongoing symptoms are.

When you apply for cover, insurers will ask if you have had the virus as part of their standard underwriting process. For most people who have had it, they should be symptom-free within a month or so and applying for cover at this point should be the same as normal, with no exclusions or changes in the premium.

For anyone with ongoing symptoms, applications for life cover, critical illness or income protection will be underwritten accordingly based on what those symptoms are.

There could be hundreds of different potential complications from the virus, so it is difficult to give specific guidance as each customer would be managed on a case by case basis.

Could there be any exclusions? Possibly, yes – it depends on the individual circumstances, but it is possible that respiratory illnesses could be excluded, for example. 

Insurers in this field can apply any exclusions as they see fit based on the medical evidence, which could apply for the term of the policy.

If no exclusions apply could there be a waiting period before any claims can be made? No, you are covered as soon as the policy starts, subject to any exclusions.

Might the cover cost more than usual? Possibly, yes – premiums could be increased depending on the circumstances by 50-100 per cent or possibly more if the situation is more serious. In more extreme cases, applications could be declined. 

If you have ongoing symptoms and already have cover in place you probably want to keep it, rather than switching it. 

Any cover in place before your health changes should remain the same and won’t be impacted by anything new that happens. That is why protection advisers will often say buy this sort of insurance when you are healthy.

But if you are switching, it is always good advice to keep the old policy in place, just in case anything comes up in the underwriting process with the new one, and then cancel it once the new one has started.

For new applications if the symptoms have gone everything should be as normal. 

If symptoms are ongoing you can apply for cover and it is recommended to do so through an independent adviser who can look at 10-20 different insurers and manage the process for you.

And remember that most protection policies, such as life cover and critical illness cover, are long term policies that don’t ‘renew’ every year like car or home insurance. Once they are in place, they typically last for 20-30 years, unless you cancel it.