Does Life Insurance Cover Death From COVID-19?

Life insurance policies typically cover death from illness, including COVID-19. These policies offer financial protection to beneficiaries upon the policyholder’s passing from most causes, without specific exclusions for pandemics. An active, in-good-standing policy will generally pay a death benefit to designated beneficiaries following a COVID-19 related death.

Coverage Under Existing Policies

Existing life insurance policies cover death from various illnesses, and COVID-19 is treated like any other covered disease. If a policy is active and all premiums are paid, beneficiaries generally receive the death benefit, as policies do not commonly exclude pandemics.

The “contestability period” is typically the first two years after a policy is issued. During this time, the insurer can investigate the accuracy of information provided in the original application. If the policyholder dies within this timeframe and the insurer discovers misrepresentations, they may contest the claim. This applies to all causes of death during the contestability period, ensuring the initial information was truthful.

If a misrepresentation is found, the insurer must demonstrate the inaccurate information was material, meaning it would have affected their decision to issue the policy or the premium charged. For example, undisclosed pre-existing health conditions could lead to such an investigation. Honesty during the application process helps avoid complications for beneficiaries.

Applying for New Policies with a COVID-19 History

Obtaining a new life insurance policy after a COVID-19 infection involves the standard underwriting process. Insurers assess an applicant’s health and risk profile, similar to other significant health events. A recent or severe COVID-19 case can influence insurability and premium rates. Insurers inquire about medical history, including past infections, symptom severity, and recovery.

The impact on an application depends on factors like hospitalization, lingering health issues such as “long COVID,” and time since recovery. Some companies may postpone an application for 14 to 30 days if an applicant is currently sick or recently recovered. Applicants with severe COVID-19 or ongoing complications might face higher premiums or be directed to guaranteed issue policies, which often have higher costs.

Transparency is crucial when applying for new coverage. Applicants should fully disclose their health history, including any past COVID-19 infections and associated health impacts. Providing accurate information helps prevent future issues with claims and ensures policy validity. While a past COVID-19 diagnosis does not automatically disqualify an applicant, severe cases or lingering symptoms may require shopping for suitable coverage.

Understanding Key Policy Provisions

Life insurance policies contain provisions governing their operation and benefit payout, independent of the cause of death. Accurate information from the applicant during underwriting is a core principle. If an applicant provides false or misleading information, an insurer may deny a claim, regardless of the cause of death, including COVID-19. This emphasizes the need for complete and truthful disclosure.

Following the contestability period, most policies include an “incontestability clause.” This provision prevents the insurer from contesting policy validity due to misstatements after a specified period, typically two years. The clause provides security for policyholders and beneficiaries, ensuring the policy cannot be voided for minor errors after this period.

The incontestability clause does not protect against outright fraud. If it can be proven that the policyholder intentionally made a fraudulent misstatement to deceive the insurer, a claim could still be denied even after the incontestability period. These clauses offer protection but also highlight the requirement for honesty when applying for coverage.