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Covid-19 and Life Insurance Coverage

The events of the past year and a half, during which we tragically lost so many people to Covid-19, have prompted many people to think more about preparing for the unexpected. After all that has happened, you might be thinking more about life insurance; for example, you might be wondering if a policy will still deliver death benefits if the policy owner dies from Covid-19, or if insurance companies have changed their policies, meaning you’ve missed your opportunity to buy life insurance. So how are insurers handling Covid-19? Do they cover deaths from it? And has the pandemic affected how they are selling policies?

Can I Get Life Insurance?

Life insurance is important because it offers financial protection for your loved ones if you pass away unexpectedly – it’s no wonder, then, that so many people have realized during the pandemic how important purchasing a policy is. In fact, application activity for U.S. life insurance was up nearly 8% year-over-year in 2020 among people under age 44, according to MIB Group’s Life Index. And there’s no need to worry: you can absolutely still purchase a life insurance policy – and thankfully rates have not been not impacted by Covid-19! With that being said, though, there are a few exceptions to be aware of.

What If…

I’ve Been Overseas Recently?

Because of uncertain pandemic conditions in other countries, some insurance companies will postpone your application approval if you have recently traveled internationally. They will also postpone your application approval if you have plans to travel abroad, or if a member of your household has recently returned from travel outside of the U.S. Generally, if you have traveled overseas, you can submit your life insurance application 30 days after the date you returned to the U.S.

If you do not disclose any international travel or plans on your application, your insurance company can deny claims to your beneficiaries.

I Have Covid-19?

Each company will treat your application differently if you have or have had Covid-19, but in most cases insurers will postpone your application for 90 days, or until you have made a full recovery, if you are currently sick. Depending on the severity of your symptoms, though, some insurance companies could postpone your application for up to six months; in addition, if you – and others – suffer from long-lasting effects of the virus, life insurers will incorporate that information into their underwriting standards, which could affect the cost of coverage for Covid-19 survivors in the future. The most important thing to remember, though, is that you need to be honest on your application about having the virus: lying about it will automatically mean that your beneficiaries will not be able to collect your policy’s death benefit.

I Die From The Virus?

Traditional life insurance policies, such as whole and term life, will likely cover deaths from Covid-19, according to spokespeople from industry research group LIMRA, State Farm, and Farmers New World Life.

Your life insurance claims will be paid out, even if you pass away from the virus, as long as you:

Were approved for a life insurance policy, either before or during the pandemic.
Did not omit information or lie on your application.
Paid your insurance premiums and did not allow your policy to lapse.

The Covid-19 pandemic has been hard on many Americans, and the death toll in the U.S. has caused many younger Americans to worry what would happen to their families if they were to pass. The sad reality that many people have passed away unexpectedly from the virus, and have left their families unexpectedly, has put a new perspective on the importance of life insurance.

Remember, you can still purchase a life insurance policy and financially protect your family, as long as you are honest during the application process. If you’re looking for a policy and are unsure where to begin, work with an agent who specializes in life insurance; this is the best way to find the policy that is right for your specific needs. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Final Expense VS Life Insurance

Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.

Final Expense Coverage

The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.

Life Insurance Coverage

If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.

A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!

white drawing of a person with 3 arrows pointing in different directions — *When deciding which plan is best for your family’s needs, it is best to compare plans from different companies.*

One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.

Deciding Which Plan Is Best

Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.

Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.

If you’re not sure where to begin looking for a policy, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Why Stay-At-Home Parents Need Life Insurance Too

As a stay-at-home parent, you don’t always get the recognition you deserve, even though you’ve got one of the toughest jobs around. Not only are you raising children, which is not easy, but you are often the one keeping up with the finances of the household, doing the many loads of laundry, running errands all day to make sure the fridge is stocked, getting your children to and from practice, and on and on. Considering all of this, it doesn’t make sense for only the breadwinner of the household to have life insurance; they might bring home the bacon, but there is so much more that a stay-at-home parent does that contributes to the household. How would your family get by if you were gone?

Don’t sell yourself short or just how much you contribute everyday within your household. In the event of your passing, your spouse or partner will have to take on more roles than before, which can cost them more than expected. They will be grieving your loss, but you can make the process a little easier by continuing to contribute to the household with a life insurance policy. It can help:

Keep The Household Running

illustration of a person carrying a bucket with cleaning supplies and a mop — *You not only clean the house, but you do laundry, cook, shop and finances, which your partner will have to take over when you are gone.*

You do not get enough credit for all the work that you do around the house, which, on top of taking care of the kids, is a full-time job. If you were to pass, your spouse would need help with the laundry, house cleaning, shopping, cooking, and childcare, since they would most likely be unable to keep up with all of that while working a full-time job. Outsourcing all of this can all be very expensive; in fact, consider this: if you were to pay stay-at-home parents for all the work they do, their annual salary would be roughly $160,000! You contribute a lot more than you think! A life insurance policy will help your spouse cover all of these new expenses and roles, ensuring that they have help even when you’re gone.

Daycare Costs

Since you are a stay-at-home parent, you are the primary caregiver for your children, if you passed, your spouse would have no choice but to put the children in daycare when they return to work. Daycare costs a little over $11,000 a year per child, which is an expense that your spouse might not be financially ready for. You want your children and partner to be able to continue their daily routines and grow, even when you’re gone. Having a life insurance policy ensures your partner can provide top notch child care for your children while also keeping their career on track.

Provide for Your Children When You’re Gone

Are you planning on helping your kids financially when they go to college? Or would you like to help them put some money down for a new house one day? Are you planning on getting a job and making a steady income once they are in school full-time? No one knows what the future holds, but with a life insurance policy, you would still be able to provide all of this financial support, even if you were no longer around.

the word debt with a green eraser getting rid of the word. — *Life insurance can help pay off some of your debts that you share with your spouse.*

Pay Off Debts

If you have any loans that your partner co-signed, they will have to shoulder the burden of paying it back. Having life insurance would take the stress off them and provide them with help paying back any of your debts.

Cover Funeral Expenses

Funerals are not cheap. Most people do not have extra money tucked away for an unexpected expense like this, but you can provide that for your family when the time comes. With a final expense life insurance policy, you can make sure your family has money for funeral costs as well as any other expenses, such as medical bills, and more.

Give Loved Ones Peace Of Mind

A life insurance policy will not only give your family tax-free benefits in the event of your passing, but it will also make an incredibly difficult time much easier on your partner and family. Your family losing a parent and partner is tough; they will be grieving, and worrying about future bills and expenses is the last thing they need while finding a way to cope.

What Kind Of Life Insurance To Get?

When choosing a life insurance policy for your family, it all comes down to your needs and what will work best for them. Do you want a life insurance policy that has cash value you can withdraw and use during your lifetime? Then a permanent or whole life insurance policy is a great option. Do you want life insurance that will remain in effect for your whole life or just for a certain amount of time? If you want a policy that will remain in effect just while you’re paying off your mortgage, for example, a term life insurance policy is perfect. The possibilities are endless, but the best way to determine which is best for you and your family is by comparing plans from multiple companies in your area.

Being a stay-at-home parent is a wonderful – and tough – job. And just because you don’t bring home any actual income, doesn’t mean that the work you do doesn’t play a large role in supporting your household financially. That means that your job is just as important as that of the breadwinner of the family, and so it’s just as important that you have life insurance. When deciding on a policy, consider using online tools to see what’s available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Tag: whole life insurance