This coronavirus pandemic has taught us so many things but most of all it has shown us that we need to be conscious of our financial vulnerability. Life can throw a curve ball at us at any moment, but having financial security can lessen the blow. Coronavirus may have changed the way you look at things and you may be thinking more seriously about looking into life insurance.
If that sounds like you, here's what you need to know:
If you currently have life insurance it will pay out a lump sum to your family or other dependents should something happen to you. It’s a security blanket for your family or dependents and will ensure that they will be financially protected. The money can be used by your dependents however they want, but generally it goes towards the mortgage, other outstanding debts, cover living costs and childcare.
While coronavirus has had a huge effect on the insurance industry as a whole, the life insurance industry has been left relatively unscathed. Life insurance is still readily available to purchase, whether existing or new policies will cover coronavirus.
One undeniable change however, is the introduction of COVID-19-specific questions on life insurance policy application forms. For example, whether you have tested positive for COVID-19 in the past 30 days, have had symptoms, or been in direct contact with someone who is positive for Coronavirus.
Income protection insurance pays out a monthly income if you are not able to work because of an accident or illness. Short-term policies cover for a limited period, normally between one and two years, though it can be up to five. Long-term policies, on the other hand, offer coverage for a greater stretch of time but they are usually more expensive.
For new policies some insurers have already introduced COVID-related exclusions. This means if you're seeking to take out income security with the expectation that you'll be covered should you contract the virus, then it may not be beneficial.
Give us a call today and speak with one of our experts. They will go over all of your options with you and get you the right life insurance to cover your individual needs.