Does Life Insurance Cover COVID-19?

Does Life Insurance Cover COVID-19

The COVID-19 pandemic has caused a lot of uncertainty in people’s lives. For instance, life insurance policies weren’t written with a global pandemic in mind. It left many people wondering if their policies would cover them if they were to pass away from COVID-19.

Those who didn’t have life insurance already started to wonder if they should get it. This article will answer questions regarding life insurance and COVID-19, and how G&G Independent Insurance can help. 

If I Don’t Have Life Insurance, Can I Get it During the Pandemic?

Yes, you can absolutely get life insurance during the pandemic. In fact, it may be easier to get than it was before due to digitization. The one thing to consider is that when you actively have COVID-19, insurance companies may pause your application until you’re in good health. There are two types of life insurance to consider, which are term and whole life insurance. 

Term life insurance is temporary, and may be good if you’re only looking to be covered for a certain amount of time. Whole life insurance will cover you your whole life and never expires. 

Will My Life Insurance Policy Cover COVID-19?

This is the question on every life insurance policy holder’s mind. Will my life insurance policy cover COVID-19? It’s a valid question, considering COVID-19 didn’t exist when most insurance policies were created. 

The simple answer to this question is yes, an active life insurance policy should cover anything COVID-19 related. This should also apply to policies that were purchased before the pandemic began. 

As long as you’ve been paying your premiums and are in good standing with the insurance company, your beneficiaries should be able to collect the death benefit. Again, your policy MUST be active for it to cover COVID-19. 

There are a few exceptions that may result in your life insurance company not covering COVID-19, which include: 

  • Inaccurate or incomplete application
  • You haven’t been paying your insurance premiums 
  • You have an accidental death only policy 

Both term life and whole life insurance policies should cover COVID-19. If you have questions, consult with your independent insurance agent to figure out how your policy works. 

How Has the COVID-19 Pandemic Impacted Life Insurance? 

The uncertainty of the timeline we’re living in has definitely impacted life insurance. Trends have become unpredictable, making it difficult to plan. For example, life insurance companies anticipated a dramatic upswing in life insurance applicants as the pandemic began. 

Increased Policy Applicants 

According to the MIB Life Index, applications only rose 1% in the beginning of 2020. This is likely because of the shut downs across the country and large number of unemployed Americans. People couldn’t afford to shell out for life insurance policies which can have expensive premiums. 

In the second half of 2020, they started to see the numbers they anticipated. By the end of the year, life insurance saw the highest annual year over year growth rate ever. As the uncertainty continued, younger people started to show interest in life insurance policies, as well. 

Not only have the numbers increased for life insurance policies, the way people can access them has changed. No longer do you have to sit in a stuffy office waiting your turn to talk to an agent. COVID-19 has motivated many industries to digitize everything they possibly can, including insurance. 

Digitizing Life Insurance Enrollment Process 

Digitizing the process has allowed life insurance companies to expand their services and make the process easier for new applicants. Being able to get a quote and purchase a policy online has changed the game forever. 


Vaccination has been a hot topic since the COVID-19 vaccines were released. There were concerns over side effects as well as whether they would affect the cost of insurance premiums. 

The introduction of vaccines has decreased the risk of death or hospitalization from COVID-19 for more than 200 million people according to the CDC. As variants continue to develop, we continue to see uncertainty in the changes in life insurance policies. 

Increased Payouts 

Unfortunately, COVID-19 resulted in life insurance companies seeing an increase in payouts due to the high mortality rates. Typically, life insurance policy holders are on the older side, and they are more vulnerable to COVID-19. 

According to the American Council of Life Insurers, life insurance companies paid over $90 billion dollars to beneficiaries of policy holders in 2020. That’s a 14% increase from 2019, and the largest year over year increase since the influenza pandemic of 1918. 

Overall, there are continuing changes to the world of life insurance. If you don’t have a policy yet, it may be time to look into it. 

Can I Purchase Life Insurance if I’m Diagnosed With COVID-19?

If you don’t have a life insurance policy already, you probably have some questions. As always, it’s important to do your research before you jump into a life insurance policy, and your COVID-19 status could determine your choices. 

For example, many life insurance companies will pause the application process if you currently have COVID-19. They want to make sure you’re in good health when you enroll in their policy. If you have a COVID-19 diagnosis with no long-term side effects, you’ll likely be approved. As always, if you have any questions, you can consult with your independent insurance agent. 

Depending on the life insurance policy you choose, you may be required to do a life insurance medical exam. So, it’s best not to lie about your COVID-19 status, as they will probably find out anyway. 

There are also no-medical exam policies due to the digital process, so talk with your agent about what’s right for you. 

Another thing to consider is your vaccination status. Yes, there are rumors out there that life insurance companies may disqualify you for being vaccinated, but that isn’t true. 

Get a Life Insurance Quote Today

If you’re ready to enroll in life insurance, look no further than G&G Independent Insurance! Contact us today for a free, no-obligation quote!