The Impact of COVID-19 on Life Insurance
COVID-19 swept through the world in 2020 and impacted nearly every aspect of life; and the life insurance market was no exception.
Given that there can be a lot of confusion and mis-information online surrounding COVID-19, we wanted to give our insights into the impact we’ve seen on the insurance market the underwriting rules and what is to come.
The Changing Picture So Far
When the cases of COVID-19 started climbing in early 2020, all UK life insurance providers implemented restrictions in their underwriting rules. These restrictions made it more difficult for some customers to secure life insurance policies.
People with certain medical conditions, such as diabetes, respiratory conditions & heart disease, were were identified as being more susceptible to severe COVID-19, along with people with a high BMI, and those who taking certain immune-suppressant medications. Insurance companies amended their underwriting rules accordingly, which made it much more difficult for people finding themselves within one of these categories to obtain cover.
Thankfully for our clients, not all life insurance providers changed their rules in the same way, meaning we have still been able to find options for most people looking to secure cover.
We have also found that in most cases, insurers did not increase premiums in light of COVID-19, they instead were more conscious who they actually offered cover to.
The Future of COVID-19 and Life Insurance
In recent weeks, we have certainly started to see signs that the UK life insurance market is returning to normal. Many life insurance providers have already started removing the restrictions implemented in 2020, which means in most cases, we are able to obtain quotes and secure cover more easily.
During your application, we will now be asking you questions to understand whether you have previously or are currently suffering from COVID-19. These questions may include:
- Have you ever tested positive for COVID-19?
- Have you been told to self-isolate within the last month?
- Have you been in contact with anyone who has tested positive within the last month?
If you answer yes to any of these questions, there is a chance that your application may need to be put on hold until a certain amount of time has passed.
If you suffer from specific medical conditions, some insurers are starting to ask for evidence of vaccinations in order to provide cover.
If you obtained a policy in 2020 and want to make sure you aren’t paying over the odds, we’d love to offer a free policy review. You can call us on 01275 404 268 or request a quote online.