Why COVID-19 Could Come in the Way of Buying Life Insurance

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The coronavirus (COVID-19) pandemic has completely changed the world. Now, people have become more aware of safety protocols, and they are looking for the best insurance policies to protect themselves and their family members from a financial crunch in the future. A life insurance policy, such as term insurance is an essential guard against many uncertainties of life. It ensures that the policyholder’s loved ones stay financially secured in the absence of the family’s breadwinner.

That said, it is becoming increasingly difficult to purchase a life insurance plan today because of the pandemic. Visiting an insurance company is no more a safe idea due to the necessary social distancing norms. This situation leaves people with the only option of buying a life policy online. However, this is even more challenging. Due to the COVID-19 scenario, insurers have updated their questionnaires and guidelines. You now require answering queries related to COVID-19 while applying for a life policy. If the insurer finds any red flag in your application, they may reject it.

This is why it has become even more important to learn about the life insurance purchasing procedure. Here, we will help you in navigating this tricky situation.

Updated questionnaires and guidelines regarding COVID-19 during life insurance purchase

Whether you are trying to buy whole life insurance, a term plan, or a Unit-Linked Insurance Plan (ULIP), you now have to answer many questions regarding COVID-19. These may vary among insurance providers; some of them are mandatory. Below is a list of the most common queries:

  • Have you or one of your family members have been asked to take the COVID-19 diagnostic test?
  • Have you or anyone close to you been diagnosed with COVID-19?
  • Are you or a family member waiting for a COVID-19 test result?
  • Have you been recently asked to self-isolate for showing any signs of COVID-19 by the airport authorities, the government, or any other administrative body?
  • Have you or anyone from your family recently received treatment for flu-related symptoms, pneumonia, sore throat, fever, cough, runny nose, or breathing difficulties?
  • Have you had any surgery during the last six months in India or abroad?

Gone are those days when cough and cold were avoidable symptoms. In the current circumstance, they can very well be signs of COVID-19. This can prove to be risky for an insurer, and they want to make sure that a new applicant does not already have COVID-19. Hence, if your answer to any of the aforementioned questions is “Yes,” the insurer will not issue the life insurance plan to you.

Ways to ensure the life insurance policy is approved

Commonly, insurers assess the risks before approving an application. It is especially true for online users because there is no real way of knowing their actual health condition. The best way for an applicant to handle this situation is by visiting the insurer’s office for a face-to-face consultation. When you meet an insurer, you will have a better chance to convince them that you do not have any signs of COVID-19. This will increase your chances of getting the life insurance plan.

Another effective way to successfully buy a life policy is to invest in it at the earliest. If you apply for a life insurance plan before anyone in your area is affected by COVID-19 or the locality becomes a high-risk zone, your chances of getting the approval increase. Moreover, in case of a false declaration, the insurer will deny any claim in the future. Make sure to be truthful when filling the life insurance policy application form.

Even with these challenges, do not forget that your primary goal is to buy the right life policy. You can use an online life insurance premium calculator to compare different policies and find a suitable one quickly.