When it comes to the coronavirus outbreak and insurance, we've mostly covered the way the pandemic will affect your travel plans. But because we navigate the economical impact of COVID-19 and also the financial challenges ahead, we wanted to check what it really means for other kinds of insurance.
After all, certain insurance can safeguard both you and your family members from financial loss or hardship.
According to Global News, more than 500,000 Canadians have requested Employment Insurance (EI) or financial assistance, compared to 27,000 this time around this past year.
If you are directly impacted by coronavirus since you are sick or quarantined, or caring for somebody that is sick or quarantined, you're entitled to sickness benefits. Bear in mind, you must have worked a certain number of hours in the previous year, depending on where you reside to be eligible. The good news is the usual one-week waiting period and the requirement of a medical certificate to gain access to these benefits happen to be waived.
Healthy Canadian workers who are let go, or face reduced hours because of COVID's impact are eligible for that Government's new Emergency Support Benefit which will provide as much as $900 every two weeks for 15 weeks.
Starting in April, workers who aren't typically entitled to EI, like the self-employed and freelancers, may also make an application for the Emergency Care Benefit.
How coronavirus affects life insurance
When it comes to life insurance, there aren't any known exclusions associated with coronavirus now, said Jeff Bernstein, independent insurance planning specialist and managing partner at Seligman Insurance within an interview.
“If you already own a life insurance coverage and also you spend the money for premiums this is treated no differently than every other reason for death,” he explained.
Generally speaking, life insurance policies pay out regardless of how you die (except for suicide).
“This pandemic and the public health scare around it may have caused more and more people to reflect on their plans and requires from a personal finance standpoint,” Bernstein stated.
“It's certainly well worth the conversation, but just because there's a pandemic around does not mean that of the sudden we have to buy every insurance that exists.”
If coronavirus was the wake-up phone you required to get your life insurance some insurers will allow you to still feel the entire application without meeting the advisor face-to-face, said Brian So, founding father of Brian So Insurance within an interview.
The underwriting process in case your policy needs a health check happens to be under review therefore it is better to contact your potential insurer to explain what their process is at the moment.
Should you know your home insurance provider you're working from home?
An increasing number of people are working from home to assist steer clear of the spread of coronavirus.
Those numbers are expected enter into Ontario using the announcement yesterday from the closure of non-essential business for the next fourteen days.
“Teleworking and online commerce are permitted at all times for those businesses,” the press release said.
So, if you are lucky enough to work at home, does your house insurance carrier have to know?
Well, that depends. If you're temporarily working from home it isn't mandatory to let your insurer know. Generally speaking, property insurance will cover your personal belongings including some electronics and private liability, should you be accused of a personal injury sustained on your property.
However, your standard policy might not be adequate to cover company property, for example expensive equipment that you might use for work. In such instances, it wouldn't hurt to call your provider and check if you want to extend your coverage.
If your type of work requires visitors to the house for purposes related to the business, you should also consider verifying together with your provider should there be any endorsements to think about, but you likely won't (or more accurately, shouldn't) be receiving any visitors at the moment when we're said to be practising social distancing.
According towards the Insurance Bureau of Canada (IBC), a house insurance plan offers a small coverage limit for books, tools and instruments essential for a business, profession or occupation. Therefore, if you operate a small company out of your home on a more permanent basis, you should tell your insurance representative and obtain additional coverage to mitigate the chance of a possible loss.
Should you cancel your car insurance?
For drivers fortunate to become working at home indefinitely, it may be tempting to park your car and reduce your cost by cancelling your auto insurance.
There are some things to think about before you do this :
- If you're operating an automobile in Canada, it's mandatory to possess car insurance.
- Cancelling your insurance may come having a fee, especially if you're cancelling before its expiry date.
- A gap in coverage may lead to higher premiums (insurance companies look at this when determining rates).
- The penalties for being caught driving without auto insurance incorporate a fine, licence suspension of up to annually or getting your vehicle impounded.
An alternative option could be to remove your coverages if you're not driving your car and just possess a elementary of insurance. It will help reduce the monthly cost significantly. Whatever you decide, don't just stop paying your vehicle insurance, this might result in your insurance provider cancelling your policy.
If you're facing financial hardship or worried you won't cover the cost of your premium payments due to the impact of COVID-19 IBC suggests contacting your insurance representative to go over a potential solution.
“Canada's home, car and business insurers are for Canadians. We know Canadians are navigating a new world with changes occurring rapidly within our communities and beyond. Insurers are dedicated to working with Canadians over these uncertain times,” said Don Forgeron, president and CEO, IBC within the pr release.