Currently, there has been a disruption everywhere around the globe due to the coronavirus pandemic. Admittedly, during these strange unprecedented times, it has been very difficult for many individuals to double deal with both work and childcare while also coping up with tight income budgets and the constant worry about the safety of your family. Therefore, each individual needs all the protection they can get in these unsettling times.
When I pulled Erin out from school I thought it would be for a few weeks, possibly a month or so. I had no idea what the reality would look like and that I would be homeschooling for months and Dylan would not sit his GCSE’s. That just seems so far from normality, instead I have spent weeks finding things for teenagers to do in lockdown!
People tend to buy insurance policies such as critical illness and health covers to secure them some peace of mind in times of uncertainty, such as the current scenario.
However, there have been many widespread misconceptions about whether people are still able to reap the full benefits of life insurance products or not.
This dilemma in turn is stopping individuals from taking these covers leading to continuous heartaches and worries for many families. Hence, this situation has raised the eyebrows of our experts at LifeSearch, the leading insurance broker.
LifeSearch advisers have been reporting confusion and fear from customers during inbound calls. This is supported by consumer polling data: 1 in every 10 unprotected people feel that they wouldn’t be able to access life insurance now, and a similar number (9%) don’t think coronavirus would be covered under new policies, and more than one in five (22%), with already stretched finances feel the covers are unaffordable.
So What Are We Doing at LifeSearch?
Whenever a global threat such as COVID-19 hits the world, you may start wondering how the pandemic effects might shape the life insurance cover you’ve already taken or you may get the thought of taking life insurance because of the unpredictability and uncertainty of events in the life.
Life insurances not only protect your dependents from financial disasters and sudden vagaries of life like accidents but also provide them with financial stability when the earning individual passes away.
Emma Walker, from leading life insurance broker LifeSearch, said.
“It’s a stressful time for a lot of families who may be under unprecedented financial pressure as well as worrying about the longer-term implications if the worst happens”
“Our advisers are speaking to people who are understandably feeling concerned about protecting their families and have spoken to many people who are worried they may not be able to get cover that suits their budget during the COVID-19 pandemic but protection insurance is still available”, she added.
Therefore, we at LifeSearch are earnest to provide the right information and reassure people that, whatever their circumstances or budget are, it’s really important to get protected.
What Are The Available Covers?
- Life Insurance
It is also referred to as life cover or death cover that is articulated to offer you a reassurance that your dependents will be provided for if, you’re no longer there to cater their needs.
Not every individual requires life insurance but if your partner, relatives, and your children depend on your finances to cover the mortgage and other living expenses, then the perfect answer is yes! You need life insurance because it will help provide for your beloved family in the event of your death.
It pays the dependants money as regular payments or just a lump sum when the insured person passes away. The level of cover you take will determine the amount of money to be paid out.
You can still take out new life insurance policies that will pay out for coronavirus although, you need to know that various insurers have brought up questions for assessing your level of risk occurrences, and you are required to honestly answer every question.
- Critical Illness Cover
Critical illness insurances or the critical illness covers are long-term insurance policies that cover serious medical conditions or diseases such as stroke, cancers, heart attack, etc that are listed within the policy.
Once you get sick from one of the listed illnesses, the critical illness policy will pay you a one-off payment that’s tax-free which will help you clear your debts, pay for a mortgage, rent, or any alterations at your home like wheelchair access whenever you need it.
As for critical illness covers at the moment, COVID-19 isn’t seen as a critical illness but, if it was to cause conditions that are covered on your plan, then you would receive payout dues, and this is true for new policies too.
Critical illness insurance doesn’t cover illnesses you had before applying for the insurance and this type of insurance does not pay out in case you pass on.
Consider taking a critical illness cover if you do not have savings to cater for your expenses when you become seriously disabled or ill and if you do not have the employees’ benefits package that may cover a long off work period.
What Should People Do?
Apparently, if something goes wrong, the state benefits won’t be enough to recover your income and also you cannot work because you’re disabled or sick.
Moreover, according to LifeSearch’s new research, interest in life insurance among those who are unprotected has almost doubled since last year with more than one in five (22%) planning to apply in the next year compared to 12% in March 2019.
Inquiries and applications for income protection and critical illness cover are similarly set to increase over the next year.
It can seem like a really confusing and not to mention expensive time for families and the insurance industry is moving quickly as the situation develops.
The best thing to do is to contact a broker such as LifeSearch. Their advisers are experts in the whole market and will talk to you through all your options depending on your specific circumstances.
For the individuals who are constantly wondering if they should buy life insurance during the coronavirus pandemic, the easy and short answer is YES! Don’t wait until the global health crisis gets established for you to take the necessary financial protection for both your family and yourself.
Pandemic is not the end of the world and life/critical illness covers are always a part of risk management plans. So, if you’ve people who depend on you for income and also have outstanding debts, you need to have life/critical illness insurance that will protect those dependents and you from the unforeseeable circumstances.
Lastly, whenever you’re taking out an insurance policy, ensure that you go through the small print and understand the policy limitations. For instance, will it cover virus-related medical expenses? And in case you get quarantined abroad, will it be extended until you’re safely home? Getting to know what policy you’re taking protects your interests and imparts you with a better understanding.
One Response
Nicely put together thanks for explaining 🙂