I don't have life insurance but the coronavirus epidemic has really worried me: Is it too late to take out life insurance and would it pay out if I got coronavirus?

I’m really worried about the coronavirus, especially because I don’t have any life insurance. 

My husband and I both work full-time, and he wouldn’t be able to afford our mortgage or childcare costs on his own without my income.

Is it too late to get life insurance now, and will it pay out if I get coronavirus?

Allan May from specialist life insurance adviser, Cavendish Online, replies:

Let me start by reassuring you that you are not alone in your concerns. Understandably, the coronavirus pandemic has caused many people to feel anxious and worried about what the future holds. But to answer your first question - no, it’s not too late to look at life insurance, but depending on your current health and travel history, you may find it a little harder than normal to get insured.

Can I still get life insurance?

Insurers are still offering life insurance cover and it’s possible to still get cover if you need it. The main difference today, compared to the time before coronavirus, is that some insurers are asking more questions when you apply for life insurance. They will want to understand if you have coronavirus or have symptoms of coronavirus. They may also want to know if you’ve recently travelled to a part of the world that is classed as high-risk for the virus.

If you answer ‘no’ to these questions, you should be able to get life insurance as normal but will possibly face some delays given the business disruption caused by the pandemic. If you answer ‘yes’ to any one of these questions, the insurer may decide to delay, or postpone your policy, so that they only cover you once they know for certain that you don’t have the virus.

Coronavirus is causing worry and, understandably, many people are considering getting life insurance. What I would say is that it is really important to be honest when you apply for a policy and answer all application questions as accurately as you can. Insurers can decide not to pay life insurance claims if they find out that someone hasn’t been completely honest in their application, which would essentially make the policy worthless.

Would the policy pay out if I got coronavirus?

Yes, your life insurance policy would pay out if the worst were to happen and you passed away from coronavirus. This is, of course, provided you were completely honest when you applied for your policy.

Life insurance companies generally don’t trade in grey areas, they consider only one question; is the person alive or not? If they are not, then the policy pays out, regardless of the cause. 

This really is the purpose of life insurance, to give you peace of mind that your family would be financially looked after if you were to pass away, as a result of coronavirus, or any other cause.

Will life insurance be more expensive because of coronavirus?

Life insurance quotes depend on a number of things, but essentially, the price you’re charged will reflect how likely you are to claim. The higher your chances of making a life insurance claim, the more expensive cover will be for you. When insurers expect there to be more claims generally, they will increase life insurance prices for everyone. 

Coronavirus is troubling, and we sadly have seen a number of deaths as a result of the virus, but we do know that the vast majority of people who test positive for coronavirus will fully recover, after experiencing minor symptoms. Insurers may see a slight increase in life insurance claims as a result of the virus and therefore may increase their prices.

Will I still need my policy when coronavirus is over?

In short - yes! 

Our advisers have seen a 75% increase in insurance enquiries since the onset of the virus, which is not surprising given that people are worried about the consequences of COVID-19 and the financial impact it could have on them and their families. 

But, coronavirus or no coronavirus, there are still lots of reasons to consider life insurance.

As humans we face all kinds of risks every day. For example, one in two people will get some form of cancer in their lifetime, and one in four of us will experience some sort of mental health problem each year.

It’s still important to think about how you would protect your loved ones should you sadly no longer be here, regardless of whether the coronavirus scare is ongoing or not.

How do I buy life insurance?

There are a number of ways to buy life insurance but given that you’re probably not leaving the house currently, your best option would be to obtain life insurance quotes online or speak to a financial adviser over the phone. 

At Cavendish Online, we offer various options to help you find the best life insurance rates. You can apply for a policy online yourself, in just a few minutes, or you can speak with one of our specialist advisers over the phone, who can guide you through the process and help you choose the best cover for you and your family. 

Contact the Cavendish Online team on 01392 539 777 for help today.

If you would like to know more about the impact of coronavirus on life insurance, you can check out this handy guide from Cavendish Online.

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