Is COVID-19 Driving Up Life Insurance Prices?

Is COVID-19 Driving Up Life Insurance Prices?

COVID-19 is affecting life insurance prices. Here’s how.

Life insurance companies everywhere are hard at work in paying out because of COVID-19. Because of the pandemic, many families have seen the value of life insurance in a whole new light. This has led many people to ask: how is COVID-19 affecting life insurance prices in Australia?

 

Can the Pandemic Affect Prices?

Australia’s insurance industry is already expected to decline because of the Coronavirus pandemic. However, will individual life insurance pricing be affected? The short answer is that it depends.

For existing policies, your insurance company cannot increase your existing policy’s price. Make sure that you consult your contract for more information.

For new policies, health insurance prices are already increasing. Life insurance premiums are also projected to increase because of the higher risk. If you don’t already have one, it would be wise to get life insurance as soon as possible.

Some people worry about being able to pay for life insurance during the pandemic. Fortunately, many life insurance companies addressed this unease by offering relaxed payment schemes. As such, if paying on time is what’s holding you back, then you shouldn’t have to worry.

Factors that May Affect Life Insurance Rates

Some individual factors can affect the price of your new life insurance, and here are some of them:

  1. Contracting COVID-19 before you get insurance

If you contract COVID-19 before getting insurance and it leaves permanent damage, expect higher prices. COVID-19, after all, is believed to possibly cause permanent lung or brain damage.

  1. Full recovery

Many people make a full recovery after contracting COVID-19. If this is the case, then these people shouldn’t expect life insurance premiums to increase by much.

  1. Travel history

Depending on the insurance company, your travel history may increase premium prices. Other companies, on the other hand, will only ask you to delay your application. Make sure you ask your insurance company for details.

  1. Expect new measures

With the pandemic currently running rampant, many insurance companies have put new measures in place. These measures may cause some delays in the application process. While these measures do not necessarily increase the prices of life insurance, they can affect the expenses of the application process. For example, some companies may waive part of the application fee, while other companies let you save on the cost of a new medical examination and instead use recent records.

Life Insurance is Now More Important than Ever

Regardless of price changes, costs can still vary from one company to another. Make sure that you compare them properly to get the best prices. Online comparison sites can help. Get started today!