COVID-19 and Life Insurance | 5 Great Myths About COVID-19 and Life Insurance

QwobhyMarch 23, 2022

0 3 minutes read

COVID-19 and Life Insurance | 5 Myths About COVID-19 and Life Insurance.

As COVID-19 continues to surge through communities across the globe, it’s natural for people to raise questions about their life insurance policy and the effects that the coronavirus may have on their coverage. We’re covering five common questions about life insurance and coronavirus in 2022.

The COVID-19 vaccine has had an impact on my policy

One common question about life insurance and coronavirus is how the vaccine can affect your policy. According to the American Council of Life Insurers (ACLI), the COVID-19 vaccine does not have any impact on an insurer’s decision to pay out claims. “The fact is that life insurers do not consider whether or not a policyholder has received a COVID vaccine when deciding whether to pay a claim,” says ACLI Senior Vice President, Policy Development Paul Graham. The vaccine is also not a factor when insurers determine your eligibility for a policy.

Life insurance through your employer is sufficient

Taking advantage of group term life insurance rates through your employer’s life insurance policy is a great way to supplement individual life insurance coverage, but an employer group policy is usually not enough by itself. If you were to lose your job or change employers, your work-sponsored coverage generally doesn’t come with you. Even more, your employer usually only covers up to one- or two years’ salary in your policy amount. Your loved ones would likely need more financial support to continue their standard of living if you were no longer around.

Having previously contracted the coronavirus does not impact your ability to qualify for a life insurance policy at this time. Also, it generally does not impact your premium prices, but this could change in the future. It is always important to be honest on your application for life insurance coverage, sharing any details about previous travel to areas heavily impacted by the pandemic or other exposures if prompted. If the insurance company discovers that you lied about a health condition, risky activity, tobacco use, or travel to countries with potential health risks, the company could increase your premium, deny a beneficiary’s claim to the death benefit, or even cancel your coverage.

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Life insurance is getting more expensive

It is still too early to tell if the coronavirus will have lasting effects on policy premiums, as medical professionals will need to assess the real long-term impact of the virus. If there are long-term health effects connected to COVID-19, this could affect life insurance underwriting policies in the future, but for now, nothing has changed.

This is one of the most common myths about life insurance, but, in reality, life insurance can be very affordable! According to a study from LIMRA and Life Happens, “Forty-four percent of Millennials estimate that the annual cost of 20-year term life insurance for a healthy 30-year-old at over $1,000 when it’s closer to $165 per year.”

Quility Level Term, a term life insurance policy offered exclusively through Quility, provides some of the lowest rates available, with coverage starting as low as $18 a month. Term life insurance is recommended for most individuals who are looking for customized, affordable coverage that covers the period in their lives when they have financial dependents.

You don’t need life insurance if you’re young and healthy

This myth about life insurance is one of the most commonly asked questions we receive. Getting a policy when you are young and healthy is the best time to get covered, as your rates will be the most affordable and you can qualify for higher coverage amounts. Your life insurance premium is based on your general health and your age at the time you apply for coverage, so securing a policy while you have time on your side is a great way to save money long-term! Even more, life insurance isn’t just for the head of the household – if you leave behind any sort of financial burden if you were to pass away tomorrow, you need to get life insurance. If you have children, own a business, or provide financial support to others, you need life insurance.

Ready to get  life insurance?

With Quility, you can apply for coverage for our Quility Level Term life insurance policy entirely online and get your policy delivered to your inbox in 10 minutes or less. No doctor’s visits or consultations are needed. Get started on our online application to get affordable life insurance that fits your life and budget. It’s that simple!