How Does The Coronavirus Affect Your Family Life Insurance?

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As a devoted husband and father, supporting my nearest and dearest financially whatever the future may hold is of paramount importance.

Unfortunately, how fragile life can be has become even more prevalent during these uncertain times.

So, when FCA regulated broker; Reassured Ltd offered to write a Coronavirus and life insurance FAQs to help inform my readers, I accepted.

As the Coronavirus global pandemic continues, we wanted to alleviate any concerns you may have regarding how the virus impacts your life insurance protection.


Reassured have harnessed the extensive knowledge from their industry experts to help answer the 8 questions they are most commonly asked by customers;

  1. Will your life insurance cover you against the Coronavirus?


Life insurance claims made on existing policies as a result of the Coronavirus will be paid out as per normal, in-line with your policy’s terms and conditions.

This is because Coronavirus is a brand-new illness and will not have been made an exclusion when you took out your policy.

Please note that insurers can add a contestability clause to your policy. This means they can delay a pay-out while they look into your cause of death.

If you’ve recently taken out a policy and pass away due to Coronavirus it is likely insurers will need to investigate further to determine whether the illness was pre-existing.

In rare instances, insurers sometimes introduce a pandemic exclusion into policies. In which case, Coronavirus would not be covered.

To find out exactly what your policy covers, check your policy documents.

  1. Will Coronavirus affect my existing life insurance policy?

If you have a live life insurance policy it is unlikely to be affected by the Coronavirus.


A successful claim can be made by your dependants if you pass away as a result of Corona.


Your policy will only be invalidated if there is a specific pandemic exclusion written into your policy terms, (which is highly unlikely).

  1. Will the Coronavirus harm my chances of securing a new policy?


It is still possible to obtain life insurance protection during this unprecedented global pandemic.


Although, since the outbreak, certain insurance providers have changed the application process to get a better understanding of the risk you pose.


This generally takes the form of introducing new questions during the application process.


If you are found to have symptoms or have tested positive for Covid-19, it is likely your application is postponed until you have made a full recovery.


It is important to state that each insurer has a different application process and therefore not all providers will have changed their processes.

  1. Has the Coronavirus affected the insurers underwriting criteria?


Some providers have made adaptations to their underwriting process as a result of the Coronavirus outbreak.


You could now be asked if you are experiencing any Coronavirus symptoms or if you have tested positive for virus.


You may also be asked if you have been advised to self-isolate or have had contact with anyone who has tested positive.


If you’ve recently travelled to countries which have had high infection rates of Coronavirus, such as China or Italy, this could also have an impact.


Regardless of these factors influencing your life insurance, it is vital you do not withhold information from the insurer during the application.


Doing so could invalidate your policy and deprive your family of a pay-out, rendering your selfless investment a waste of money.

  1. Will my monthly premiums increase?


With the Corona outbreak impacting many peoples economic situation, you may be concerned about paying your monthly life insurance premiums.


However, rest assured, it is very unlikely that your monthly life insurance premiums will rise as a result of the Coronavirus.


If you have an existing policy your premiums would have been fixed when you took out your policy.


New policy premiums are also unlikely to be impacted by Coronavirus.

  1. What happens if you cannot afford to pay my premiums?


During these very strange and financially challenging times, it may be necessary to defer on a monthly payment.


If you miss a payment some insurers offer a period of grace before your policy lapses and cover ceases.


What’s more, if you are planning on cancelling your life insurance as a result of not being able to make payments, you should contact your insurer directly as they can talk you through your available options.


Every insurer will have a different stance regarding missed payments and some insurers are even more understanding at this time that people may be in financial difficulty.


We encourage you to have an open dialogue with your insurer and not to leave your loved ones financially vulnerable.

  1. Will critical illness cover Coronavirus?


As Coronavirus (Covid-19) is a new strand of illness, it will not be listed as an illness in a critical illness policy.


As a result, if you become unwell with Corona you will not be able to make a successful critical illness claim.


However, if you are ill with Coronavirus and you develop an illness that is listed on your policy it is likely that you will be able to claim.

8) Can I still take out a funeral plan?


Yes, at the time of writing this article, you can still take out a funeral plan as services are still going ahead in the UK. 

However, there will be certain restrictions to the services included in your funeral plan, including;

–               Less flexibility on the date and time of your funeral

–               Transport to and from the funeral home

–               Number of mourners to attend the funeral service.

In summary

So there we have it, how this devasting Covid-19 virus affects your life insurance.

We hope the above has been helpful and that you ensure your loved ones are financially protected whatever the future may hold.

In truth, having financial protection in place, whatever form it may take, has never been so important.

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