Does life insurance cover the coronavirus (COVID-19)?

Nearly every conversation I have with family, friends and coworkers starts with discussing the latest COVID-19 (also referred to as coronavirus) news and just how the situation is evolving within our communities and round the world. Can you relate?

Recently, my friend Hela, who is surely a Haven Life customer, asked if her lifetime insurance policy covers death from the pandemic like COVID-19. As she place it, “I need to make sure that basically die, it will not be excluded as some kind of global health crisis.”

We understand that, like Hela, you might feel uncertain about how exactly the coronavirus affects your lifetime insurance. Below we're providing clarity around questions Haven Life customers or those shopping for life insurance may have concerning the outbreak. If we missed your question, our customer success team is happy to assistance with answering. Please keep in mind that these responses are specific to policies sold by Haven Life, which are all underwritten and issued by our parent company MassMutual.

Stay healthy,

– Brittney and the Haven Life team

COVID-19 impact when trying to get life insurance

Q: Does life insurance coverage cover death from a global health crisis like Covid-19?

A: So long as you were honest in the application process about health, travel and pre-existing conditions, yes, term life policies sold by Haven Life cover death from the coronavirus.

Q: Can I still buy life insurance during the COVID-19 pandemic?

A: Yes, you can still apply for term life and, if approved, get coverage started immediately. If you want to take a medical exam to finalize coverage (which you'll be notified of when your application is submitted), please note there could be limitations in availability during this period. All applicants now have 120 days to accomplish the health check. And in some cases, you could have temporary coverage in place before you go ahead and take medical exam.

Please remember that due to a rise in application volume and added review that may be needed during underwriting, it could take much more time to get your final decision and provide.

Q: Can I get coverage basically recently traveled to or plan to travel internationally?

A: Underwriting guidelines because of COVID-19 are evolving. For those who are utilising for our MassMutual-issued policies, there might be additional questions within the underwriting process about international travel and potential waiting periods for a decision as a result.

Coverage eligibility for a lifetime insurance applicants with confirmed departure date to convey Department Level 3 or 4 countries (which currently includes all countries) is going to be postponed and require a 30-day waiting period after they return to the U.S. When the Thirty days have passed, individuals may reapply. This waiting period and applicable countries may change once we find out more. Additionally, for those who have recently returned from international travel by having an illness or respiratory infection, a decision on coverage eligibility would be postponed until after the 30-day waiting period.

If you need specific questions answered regarding your departure date and if you will see having to wait, our customer success team is satisfied to assist.

Q: Are life insurance premiums going up as a precaution?

A: Life insurance premium rates are not increasing because of COVID-19. Please remember that if an applicant contracts an illness, then that could boost the price of the premium or make an applicant ineligible for coverage.

Q: Can I get instant, no medical exam life insurance coverage?

A: You might have guessed we'd say this, but: the answer to this might evolve with time, too.

Currently, eligible applicants either can qualify for our InstantTerm, no health check experience or might be able to get temporary coverage in place when they develop a health check and await the results. Due to the need for additional caution surrounding international travel, you may want to answer some questions from an underwriter about future plans before receiving an offer. Remember that you need to be honest in the application. The issuance from the policy or payment of advantages may depend upon the truthfulness of answers provided in the application process.

Whether some follow-up questions or perhaps a health check are essential, we work very hard to make dependable buying term life insurance as easy as possible. Once a credit card applicatoin is submitted, which takes about 15 minutes, you will be notified of whether you are approved for coverage or if more information is required. Customers who require to take a medical exam now have an extended time period to consider it – 4 months.

Q: How does two-year contestability work if I contract COVID-19 soon?

A: This provision in your lifetime insurance contract protects the company from fraud or false application information. Life insurance companies do pay claims throughout the two-year contestability period. Having said that, any claims made within the first couple of many years of having a policy could be more thoroughly reviewed to make sure application information was truthful and complete. As long as you reported honest information on your life insurance application, including sharing health conditions or international departure date, then you have little reason to be concerned about if a claim associated with COVID-19 would be paid.

Q: Still performing life insurance coverage medical exams?

A: In most states, applicants continue to be able to schedule the health check to become performed at a location of the choosing. The third-party exam administrator we use, ExamOne, has rigorous safety measures in place to protect patients and employees from pressing infectious diseases.

Prior to scheduling, ExamOne has become proactively asking applicants about fever or respiratory illnesses in addition to recent travel to make sure the health of its examiners. If the applicant happens to be experiencing a disease or was recently in a State Department Level Three or four country, the medical exam is going to be postponed for 14 days.

For the healthiness of paramed examiners, don't plan a health check if you are sick or maybe the place in which you intend to take the exam might be contaminated.

Q: If I don't feel comfortable taking a health check at the moment, can I take it at a later date?

A: The third-party exam administrator we work with, ExamOne, takes the proper precautions to safeguard life insurance coverage applicants and employees from coming in contact with infectious diseases. Considering the COVID-19 public health emergency, ExamOne has taken additional measures to bolster preparedness. These precautions include frequent disinfecting of surfaces, frequent hand washing, and creating a special response team together with special training for employees.

Especially in uncertain these times, we would like customers and medical examiners to feel comfortable and remain healthy. All applicants are in possession of 4 months to accept medical exam, therefore if an individual doesn't feel at ease using the exam or if there are limitations in exam availability, there will be adequate time to go ahead and take exam at a later date. For applicants who're nearing no more the allotted time for the exam, please contact customer success to ascertain if we are able to offer an extension.

Q: If I'm sick should I have a health check?

A: Generally, if you are experiencing any kind of illness or infection, it's advisable to postpone using the life insurance medical exam until you feel good. Being underneath the weather can skew the results of the health check, which may not present the underwriting team by having an accurate depiction of your health.

If you have any concerns that you might be sick or experiencing symptoms like a sore throat, cough, or difficulty breathing that are commonly associated with herpes, please speak to a medical professional immediately and don't plan a medical exam.

Four life insurance buying tips during Covid-19

#1 If you need coverage now, there’s no reason to wait

Anyone that has financial dependents, such as children, someone or aging parents, should consider buying life insurance coverage to assist financially protect their loved ones. During the Covid-19 pandemic, you may still easily apply online for term life insurance within a few minutes. If approved, coverage can start immediately. In some cases, you might not need to take a medical exam. (Bear in mind: It's important to observe that issuing the insurance policy or payment of benefits is dependant on the truthfulness of answers within the application.)

Pricing for policies sold by Haven Life have not gone up, so you can still purchase affordable term life insurance during Covid-19. A proper 35-year-old woman can buy a 20-year, $500,000 policy through Haven Life for around $20 monthly.

#2 Look for benefits that include your term life insurance policy

Your term life policy can be not only a regular monthly bill, so look for coverage options that provide additional financial or health advantages. For example, Haven Life customers gain access to a rider called Plus that provides a suite of services which are included in the cost of your term life policy. Through Plus, Haven Term policyholders can utilize a no-cost individual or couples' will through our partner Trust & Will as well as an annual membership towards the in-home fitness app Aaptiv and much more.

#3 Be truthful throughout the application process

It’s always important to be as honest as possible when trying to get term life. Disclose health conditions and planned travel. If you’re feeling symptomatic, disclose that proactively. Withholding info on an existence insurance application can impact payment from the death benefit. We want to be sure that your family members are financially protected from the unexpected and honest answers help us achieve this.

#4 If you need to take a medical exam, don’t be discouraged

For medically underwritten coverage, which is normally the least expensive type of term life insurance, you often have to take a health check. This exam usually can save you a lot of money over the 10-30 years you've got a policy. If you discover out you need to have a medical exam to finalize your coverage, eligible applicants may be able to get temporary coverage until the exam is taken. That’s real coverage that might be paid to your loved ones if you died. Due to the Covid-19 crisis, Haven Life is also extending the period of time to consider medical exams to up to 120 days from the date from the application.

COVID-19 impact for life insurance policyholders

Q: Does my policy cover death from COVID-19 or a pandemic?

A: As long as you were honest in your application about preexisting conditions and plans for travel, policies sold by Haven Life insurance death from COVID-19 or perhaps a pandemic overall.

Q: Will my coverage end if I can't afford to pay my premiums?

A: We're here to aid our customers during this period of uncertainty and financial hardship. Customers who're concerned about maintaining their monthly premiums should contact our customer success team for accommodations.

Q: Does the two-year contestability period impact whether I'm covered from death by COVID-19?

A: First, some background: your life insurance plan is really a contract between you and also a life insurer. A two-year contestability period is a common clause over the industry that protects insurers from fraud or falsehoods on applications inside the first couple of years the policy is within place.

Life insurance providers do pay claims during the two-year contestability period. Having said that, any claims made within the first couple of many years of having a policy could be more thoroughly reviewed to ensure application information was truthful and complete. Should you honestly answered the questions in the life insurance application, then you've little reason to worry if claims related to COVID-19 would be paid.

Q: If I contract COVID-19, can I make use of the accelerated death benefit rider?

A: Currently, the majority of COVID-19 cases aren't fatal for younger, healthier individuals, which a number of our clients are. And to connect to the accelerated death benefit rider, a policyholder should be terminally ill with a documented life expectancy of two years or less.

If a policyholder were to become crictally ill as a result of severe infection from COVID-19, they are able to access 75 percent of the death benefit or up to $250,000, whichever is less. Please keep in mind that whatever money is accessed is going to be subtracted in the overall life insurance coverage payout designed to beneficiaries. For instance, if your policyowner includes a $500,000 policy and accesses $100,000 from the funds using the accelerated death benefit provision, their beneficiaries would receive a payout of $400,000.

Q: Will COVID-19 impact MassMutual's financial stability and claims-paying ability?

A: Life insurance companies receive ratings from third-parties about their financial stability and claims-paying ability – with MassMututal receiving kudos across all agencies. Therefore, top-rated companies have the financial resources and re-insurance support to meet their obligations.

As our parent company put it, “… even in the most volatile market conditions, we're still able to meet the needs of people who rely on us.”

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