Tennessee COVID-19 Latest Death Counts
The Tennessee Department of Health reports daily on number of new cases and total number of cases in the state. According to TN.Gov,on April 18th, the total number of known cases in Tennessee hit 830,4844. While most patients are considered recovered, Tennessee has reported over 12,000 deaths and Nashville’s Davidson County reported nearly 800 deaths.
The ongoing coronavirus pandemic has affected millions and this past year has made many consider the necessity of purchasing a policy or wondering if their policy is sufficient. Although the vaccine is in current distribution, there are still a lot of questions about the pandemic and financial implications to each of us.
Life insurance is one of the most important financial decisions you will ever make. The policy is designed to protect loved ones and to help ease the grieving process. Just the thought of considering the purchase can be overwhelming for many.
Consumers face obstacles in choosing the right policy, how much coverage to get, qualification standards, and who should be the beneficiary. When it comes to buying life insurance, life stage and unique client needs dictates the considerations of the right policy and coverage. Add in the pandemic, and consumers are questioning how this might affect a life insurance policy and application approval process.
Here are some top customer questions regarding life insurance and the pandemic.
Does life insurance cover pandemics?
In most cases, those who have life insurance are covered and payouts would be received due to a COVID-19 death; however, there are a few exceptions. Claims could be denied for outline factors:
1. Failure to pay insurance premiums
If you fail to pay premiums and your policy lapses, your beneficiary will not receive a payout if the policy has not been reinstated. Life insurance companies offer a grace period of 30 or 31 days. The policy can be reinstated and maintained if premiums are paid during this timeframe.
If your policy has lapsed, contact your local agent to ask about reinstatement. You may have to prove your risk status has not substantially changed since applying..
2. Incomplete or inaccurate application
The first two years of your policy are considered the contestability period. If you die within this period, your beneficiary would still likely be eligible for the payout, but your insurer has the right to review the application for any inaccuracies or misleading statements.
Intentional misrepresentations in the application apply to the term contestability. For example, if you purposefully concealed a medical diagnosis, the claim may be denied. The cause of death does not even have to be attributed to the misrepresentation. Make sure your application is accurate and complete to avoid any challenges later.
Has applying for life insurance changed during the coronavirus outbreak?
For many, the process has not changed. However, the application process may slightly shift if you are traveling abroad. In these circumstances, you might need to wait until after you return to complete your life insurance application. Some carriers will wait to approve an application if you or a member of your family is planning a trip abroad or recently returned from travel outside the country.
Each insurance carrier has their own risk-based model and specifications on underwriting. All take into consideration the CDC travel guidelines and where you are traveling.
What if I contract COVID-19 when applying for a life insurance policy?
Insurance companies may postpone your application from 90 days to six months, depending on the company. If you are exposed to someone who tested positive, the application may also be postponed or require you to provide a statement of good health.
Applying for life insurance has always been an involved process. Applicants have always had to provide a medical history and possibly a medical exam. Nowadays, the process is more extensive.
The reality is that the coronavirus disease has caused insurance companies to reevaluate risk. Long-term effects on mortality are currently unknown, even for those that had mild cases or were asymptomatic. Insurers are now left with limited risk data.
During the application process, additional questions may be asked, specifically related to COVID-19. While the answers to these questions are not disqualifying events, consumers need to understand the reasoning. Insurance carriers want to deliver quality life insurance coverage in both good and challenging times.
Talk to your local agent who can help navigate through the application process, answer your specific questions, and be ready when a human touch is needed. The right mix of local knowledge and insurance experience can protect you and your family in worst-case scenarios.
Receive a life insurance rate quote and compare prices from multiple carriers.
Montgomery & Associates Insurance & Financial Services is a trusted source in life insurance in Tennessee and across the nation.
Call for a free rate quote: 855.207.9492