What impact has Covid had on life insurance underwriting?

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In this episode, Josh and Jay discuss how has Covid-19 impacted underwriting requirements for life insurance, disability income insurance and Long Term Care insurance. The guys discuss the multiple changes to both the process of how an insurance applications are submitted and how they are processed, as well as addressing the increased demand for coverage brought about by the pandemic. As an episode bonus, Josh and Jay also list the 5 most common life insurance mistakes, and give tips on how to avoid them.

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Key Takeaways:

– If you have had Covid-19, do you still qualify for life insurance, or disability income insurance, or long term care insurance? The short answer is yes, but the carrier will have some questions. What did you recovery look like – did you stay at home, what were your prescriptions, are there any lingering effects, etc.

– For those people that suffered from Covid but did not require a hospital stay, many carriers are offering coverage 30 days out from date of diagnosis or positive test.

– For those that required a hospital for their Covid treatment, as long as no respirator was involved, you can still get coverage. Some carriers are setting it as 30 days back at home, while others are at 60, 90, or even 180 days back at home.

– If you’ve simply been exposed to Covid, most carriers are offering coverage after a 30 day waiting period

 

5 most common life insurance mistakes:

  1. Beneficiary issues: improper beneficiary, such as listing minors or children
  2. Product does not meet the insured’s needs
  3. Failure to review coverage every 2 to 3 years
  4. Inadequate coverage amount for insured’s situation
  5. Ownership issues: Sometimes the life insurance needs to be owned outside their estate, for example, in an irrevocable life insurance trust

Action Items:

If you’re needing coverage, Josh and Jay thru First Protective have many life insurance, disability income and long term care options. Even if Covid is not an issue for you, maybe you are cigar smoker or have height & weight issues. Josh and Jay can work with the carriers that are most competitive for situation. You can reach out to Gulf Coast Financial Advisors to set up a no-cost, no-obligation discussion about your particular needs by call 251-327-2124 or emailing [email protected].

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