Covid-19 and Life Insurance? (health issues, dental, replacement, price)

[reubenray]

My neighbor pointed out that if you die from Covid the insurance company may not pay? This has to do with a clause that says something like "in the event of war, pandemic, etc" they will not pay.

Is this true?

[athena53]

Wow- interesting question. My guess is that given the relatively low fatality rate for COVID (not to make light of the subsequent serious health issues many survivors have- it still scares the crap out of me), most insurers would pay rather than risk looking like bad guys in a time like this. Here's one industry blog saying it doesn't happen- but of course it's from the industry (Insurance Information Institute).

https://www.iii.org/insuranceindustr...d-to-covid-19/

[wac_432]

My State Farm agent told me they had put a freeze on issuing new policies during the early days of the pandemic. He might have just been trying to get me to prevent my policy from lapsing (I bought the same policy from Pacific Life for 1/2 price), but I assume he wasn't lying. So they probably intended to honor policies when the death was the result of COVID.

[reubenray]

My neighbor told his wife prior to having a knee replacement to make sure if something bad happened that Covid was not the cause of his death. This was after someone said the life insurance policy would not pay off.

[Lillie767]

Originally Posted by reubenray

My neighbor told his wife prior to having a knee replacement to make sure if something bad happened that Covid was not the cause of his death. This was after someone said the life insurance policy would not pay off.

I searched the internet and could not find a single instance of an insurance company refusing to pay a valid claim for a death due to covid 19.

People should stop fear mongering during these already stressful times. There are legitimate reasons for an insurance company not to pay a requested claim. First, the applicant lied on their application. Second, premiums are in arrears. Third, the policy is an accidental death only policy and does not pay benefits if the death is due to disease.

National Association of Insurance Commissioners:

"LIFE INSURANCE
All life insurance policies have one thing in common – they’re designed to pay money to the “named beneficiaries” upon death of the insured. There
are two basic types of life insurance: term insurance and cash value insurance. Term insurance covers you for a term of one or more years and pays a
death benefit if the insured dies during the term of the contract. Cash value life insurance is a form of permanent life insurance that features a cash
value savings component. The following types of permanent life insurance policies may include a cash value feature: whole life insurance, universal
life insurance, variable universal life insurance, and indexed universal life insurance. The cash value is the portion of your policy that earns interest
and may be available for the policyowner to withdraw or borrow.

There is no pandemic exclusion for life insurance. General life insurance covers pandemics, assuming you were truthful about your travel plans and
exposure to illness during the application process. However, the cash value component of your life insurance policy may be tied to equity markets,
long term interest rates, or a specific market index, such as the S&P 500, which have fallen to new lows due to, among other things, the impacts of
COVID-19. Most cash value life insurance contracts also guarantee a certain minimum rate of return that could exceed current market conditions.
An accidental death & dismemberment policy is more limited and covers deaths only when they’re accidental. It generally doesn’t cover deaths
caused by illness and disease."

https://content.naic.org/sites/defau...0Insurance.pdf

[lunetunelover]

There is a really easy answer - read your policy. And if you have questions, contact your agent.

[Hedgehog_Mom]

My dad passed from covid this summer, and his life insurance paid.

[lchoro]

They pay off on existing policies. They've adjusted underwriting and medical exam requirements for new policies to account for the pandemic.

[Lillie767]

Next, someone will posit that not wearing a mask and dying of covid is a form of suicide and life insurance policies will not pay.

[chiluvr1228]

Originally Posted by lchoro

They pay off on existing policies. They've adjusted underwriting and medical exam requirements for new policies to account for the pandemic.

^^This^^ Many now have a Covid exclusion, both for life and disability insurance.