The Covid-19 has forced us to take a step back and rethink the way we lead our lives. Our lives are already impacted by political developments, economic crashes, and social unrest. But the recent global pandemic has perhaps had the biggest impact on our lives. In such a situation, a broker advisor can help you address your disability concerns.
Here are some of the things that you need to find out about life & disability insurance in the wake of the Covid outbreak:
- Whether current life insurance policy covers Covid-related death: This may not be covered in all policies out there. So, it makes sense to have it checked by your broker agent advisor.
- Whether the type of life insurance and the amount it covers is appropriate: Like any other insurance policy, it is important to investigate whether the coverage chosen is adequate or not. Many factors are taken into account when insurers offer coverage. So, instead of waiting for a loss to happen, it is advisable to get your broker’s advice on the extent of coverage you need. You can also consult family members to make sure the coverage considers your risk tolerance level, goals, and family circumstances.
- How to extend term life policy: If you already have a term life policy, can you extend it? This is a rather pertinent question if you look at the Covid crisis. Most term life policies have term conversion privilege. That lets you convert a part of a current policy or the whole policy into lifetime policy. For this, you should not have to offer your insurer with any proof of your existing health or insurability. Disability insurance companies must issue this lifetime policy at the same rate that you got when applying for a term policy. This must be guaranteed without any exceptions, even if you may have undergone an adverse change in your health. It is the broker who outlines the details of this conversion privilege.
- Whether you can buy additional life insurance and when you can get it: If you put in an application right away with a reliable insurer, you can get it, even with the ongoing pandemic. It is recommended that you consider the options as early as possible. This is because insurance companies are continuously increasing prices for policies and lowering the extent of coverage because of Covid.
- Whether a medical professional will conduct a home exam: Just like in any life insurance policy, a qualified medical practitioner will pay a visit. This is not something to be worried about because companies have introduced safe practices keeping in tune with Covid protocols.
- Can the insurer pay claims in the pandemic: Your insurer will typically not falter when it comes to settling claims because of market conditions. The industry is well-regulated and insurers invest in high-end corporate bonds which are not so volatile.
- What happens to disability policy: Long-term effects of Covid are yet to be felt by people. While many have recovered and have no issues on the surface, there may be future health concerns. Most insurers have not changed their application processes or underwriting procedures with regard to disability policy with 90 days or more Elimination Period.
So, make sure you hire a broker to understand what Covid means for your life and disability insurance policies. He can recommend the right coverage for you or suggest changes to an existing coverage.
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