How COVID-19 impacts your Life & Health Insurance?

We have been receiving questions from our clients regarding the implication of the current pandemic Coronavirus on their coverage. Here are some general questions and answers:

Is my existing Life insurance policy affected by COVID-19 Pandemic?

There are no impacts on existing Life insurance policies. Existing life insurance policies will be covered for any claims associated with COVID-19. Life insurance is a contract between two parties, party A (Insurance company) agrees to pay out a tax-free lump-sum of money to the Party B (Insured/Applicant’s beneficiaries), in case the insured passes away. In other words, insurance companies will not treat deaths caused by COVID-19 any differently from any other causes.

Will a new Life insurance policy covers COVID-19?

Insurance companies continuously provide coverage for any new life insurance applications, once those have been approved. Until this point, Canadian insurance companies haven’t made any changes to the Life insurance application process to adjust for COVID-19. However, if you have been diagnosed or currently awaiting for diagnosis/treatment for COVID-19, Insurance companies will most likely defer the approval (similar to deferrals required by any other ongoing health condition or treatment) until such diagnosis/treatment is completed.

How does my travel history affect my new Life insurance application?

Generally, the standard life insurance applications ask questions on your last 12 months/next 12 months' travel history/plans. If you have travelled outside Canada (particularly in the last 3 months) then you may expect additional questions. However, most non-medical insurance applications don’t have any travel history questions.

Is my existing/new Disability/Loan insurance policy affected by COVID-19?

If you become ill due to COVID-19, your existing policy will get your monthly benefits as per policy wording (subject applicable waiting and benefit period). If you are healthy now, you are eligible to buy Disability/Loan insurance policy, and that policy will cover for any future disabilities related to COVID-19 or any other illness/injury or accident.

Can I buy Life or Health Insurance at this time?

Buying the necessary coverage amount of Life and/or health insurance as early as possible is the best thing you can do to protect you and your family. The current Coronavirus pandemic is witnessing how fast the health of an individual can be changed in a matter of seconds. It is very important to secure coverage ahead of time. For a 30-year-old male non-smoker $500,000 of life insurance costs as low as approximately $20.00/m. Getting coverage for each family member is smarter than having no coverage.

Can I buy Life/Health insurance without an in-person meeting with an advisor?

While everyone is doing their part of social distancing, this may lead to believe you can’t get Life/Health insurance. The good news is that we at GT Brokers Ltd., provide online/telephone meeting to assess your financial needs. Our partners (leading Canadian insurance companies) have relaxed their underwriting standard in order to provide you with the best offer, WITHOUT MEDICAL EXAMS, you can buy up to $1M life insurance coverage. You can get coverage for you and your family at the comfort of your home while practicing social distancing.