A new coronavirus called COVID-19 is currently causing great disruption and uncertainty in our lives. Many people who contract COVID-19 will only experience mild symptoms of a persistent cough and a high temperature, and will not require specialist treatment. Those who are older, or who have underlying health conditions such as diabetes, heart disease, asthma and cancer are more likely to suffer from complications as a result of contracting COVID-19. COVID-19 is a serious illness and has caused thousands of deaths worldwide due to its high contamination rate.

If you have an underlying health condition or are an older person who is considered more vulnerable in terms of contracting COVID-19, it may be worth investing in life insurance to protect your loved ones, dependants and the financial future of your family. If you were to pass away from COVID-19, do your dependants such as children, a spouse or other loved ones have enough money to cover bills, rent/a mortgage and other expenses such as the cost of your funeral? Life insurance could be a valuable option to give you and your family complete peace of mind.

Are you thinking about taking out life insurance because of the COVID-19 pandemic? Financial Advisor UK has a national network of fully FCA-registered and approved financial professionals that you can be matched with to ensure you get the right professional advice on your life insurance requirements, along with the best deals available from insurance providers.

What is a life insurance policy?

With a life insurance policy, you pay monthly premiums to your insurer, safe in the knowledge that if anything happens to you and you pass away, your dependents will receive a cash payout that will enable them to cover payments such as bills, groceries, your funeral costs and mortgage payments/rent. The amount that an insurance provider pays out will depend on the amount of cover you have taken out, and your policy.

If your death is because of a terminal illness or a virus such as COVID-19, some life insurance policies offer specific cover for this. All life insurance policies are different, so you need to check the policy you have purchased carefully to ensure it covers you for what you need.

All life insurance policies have exclusions that are imposed by the insurer. Typical and more standard exclusions include death as a result of drugs or alcohol, taking part in risky and dangerous sports, and suicide.

If you have an underlying or serious health condition when you first apply for life insurance, you must declare this to the insurer when you take out the policy. In some cases, an insurer might not cover you in case you have to claim because of that condition. It is however possible to obtain critical illness cover, long-term illness cover or total and permanent disability cover, which you’ll need to discuss with the insurer. Premiums for this type of cover will generally be higher than standard cover. If you have been diagnosed with COVID-19, declare this to the insurer when taking out your policy.

Life insurance and COVID-19

COVID-19 is still a virus that human beings are trying to understand and research. There is currently no specific cure, treatment or vaccination available for COVID-19. Because there is still much we do not know about health complications associated with the virus, life insurance has never been more important.

You can protect yourself and people around you from infection by washing your hands regularly and by not touching your face unless your hands are clean. There have been thousands of deaths worldwide as a result of COVID-19, especially in the case of people with underlying health conditions and the elderly.

COVID-19 is spread through saliva droplets or discharge from the nose in the air when an infected person sneezes or coughs. Respiratory etiquette is essential in order to limit the spread of the virus – i.e. coughing and sneezing into a tissue.

In order to keep yourself and others safe from the spread of COVID-19, you should adhere to the following practices:

• Maintain social distancing. Keep at least 2m away from other people (expect those from your own household), and especially anyone who is coughing or sneezing.
• Wash or sanitise your hands regularly with soap and water or a hand sanitiser.
• Follow good respiratory hygiene by covering your nose and mouth when you sneeze or cough.
• Stay home if you feel unwell, have a new cough and a high temperature (self-isolate).
• If you have a fever, cough and have trouble breathing, seek medical attention.

How much does COVID-19 life insurance cost?

If you have suffered or you have a family member who has been diagnosed with symptoms of COVID-19 and you need life insurance, critical illness cover or income protection, you’ll need to get in touch with our team of financial advisors at Financial Advisor UK. We can put you in touch with insurance experts who can help and offer you cover based on your circumstances. The insurer is likely to ask you questions about your COVID-19 diagnosis, including:

• When you or your family member was diagnosed with COVID-19
• Last time you experienced symptoms
• Medical complications that resulted (such as liver damage, etc.)
• Medications being taken
• Any other health complications/underlying conditions that you have

Your premiums for life insurance will depend on factors such as the type of policy you take out and the amount of cover you need, as well as the term of the policy (the number of years you are covered for). Premiums will also depend on your general health, lifestyle and smoker status. The younger you are when you initially take out a life insurance policy, the cheaper your premiums will be.

Is life insurance right for me?

Life insurance is a worthwhile investment if you have dependents who rely on your income, such as a spouse or children. If you are single and self-sufficient, life insurance might not be necessary. The best way to check whether you need life insurance is to calculate a rough budget and see how much income your household would receive if you passed away. If you’d struggle to make ends meet without your income, life insurance could be the right decision. If you’re still wondering whether or not to take out life insurance, speak to an independent financial advisor through Financial Advisor UK. All of our professional experts are regulated by the Financial Conduct Authority (FCA). Financial Advisor UK can match you with the best advisor for your circumstances from a national network of fully FCA-registered and approved professionals, ensuring that you get the best professional advice along with the most affordable deals on the market.