COVID-19 and Life Insurance: your questions answered

Banner that reads: COVID-19 and life insurance: q&a with our life advisers

 

During this period of uncertainty, we know that there are many questions about what COVID-19 means for life insurance policies. So we asked our Life advisers what the four most common questions they've been asked during COVID-19 are.

 

Does my Life Insurance and/or Income Protection policy cover me for COVID-19?

If you hold a retail policy through Insurance House Life, yes you are covered for COVID-19.

Retail life insurance policies generally cover pandemics. Life insurance policies will generally only exclude self-inflicted acts, war or an act of war. In addition to this, retail income protection policies may also exclude:

  • some pregnancy related conditions
  • non-prescription drug use and alcohol abuse
  • some elective surgeries
  • participation in the armed forces
  • criminal activity

Some, but not all, group insurance policies offered by employers or industry/corporate super funds have pandemic exclusions. Others may only apply an exclusion within a specified period of the member's insurance cover commencing.

Any claim for insurance will be assessed based on the terms and conditions of your policy, with the required medical evidence. Income Protection policies do have waiting periods that apply (generally from 30 days). Please get in touch if you think you are eligible to claim and we will assist you through the process.

 

Can I take out new insurance cover to cover me for COVID-19?

Generally, yes however all applications for retail life insurance will be assessed on an individual basis. Most insurers will not exclude COVID-19, but if you are currently suffering from the condition or have recently travelled, new insurance cover will be deferred for a period of time. Availability of new cover can also depend on your current occupation, and whether your employment has been impacted by COVID-19 restrictions.

 

How much should I be insured for?

How much cover you need, as well as what types of cover, will depend on your individual circumstances.

From a personal perspective, some things to consider are:

  • repaying your mortgage and other debts
  • covering lost income and ongoing living expenses
  • providing for children's school fees
  • medical expenses
  • any home modifications that may be required

You may have a small amount of default insurance cover through your superannuation accounts, however this is not always enough to meet your needs.

If you are a business owner, you may wish to consider:

  • protecting any business loans (particularly if you have given personal guarantees for those loads)
  • protecting a key person in the business who is responsible for a large portion of the business revenue
  • whether you and your business partner/s could afford to buy the other person out if one was to die or become permanently disabled.

These circumstances will be different for everyone, so we encourage you to discuss your situation with a specialist Insurance House Life Adviser who will discuss your options based on your individual needs and circumstances.

 

Does my Income Protection policy cover me for redundancy?

No. Income Protection insurance covers up to 75% of your gross income in the event you are unable to work due to any sickness or injury and are under the regular care of doctor. It pays a monthly benefit after your chosen waiting period, until you're able to return to work, or until the end of your chosen benefit period (up to age 70 maximum).

Some income protection policies do offer premium waiver benefits if you have become involuntarily unemployed.

 

Is there a question that we didn't cover that you want the answer to? Do you wish to talk to one of our advisers about what Insurance House Life can offer you? Call 1300 305 834 and ask to speak to a member of our Life team today.

 

A photo of adviser Nicky Hamilton Morris

 

Photo of adviser Craig Matthews

 

Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.

 
Tim Hawker, Craig Matthews and Nicky Hamilton-Morris of Investment House Echuca T/As Insurance House Life ABN 90 105 663 401, are authorised representatives of Apogee Financial Planning Limited ABN 28 056 426 932, an Australian Financial Services Licensee, Registered office at 105 –153 Miller St, North Sydney NSW 2060 and a member of the National Australia group of companies.

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