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Does Life Insurance Cover Deaths From Coronavirus?

COVID-19 deaths are likely to be covered by life insurance plans, but there are several exceptions.

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COVID-19, the disease caused by the novel coronavirus, has already claimed the lives of thousands of people around the world. Many that have life insurance are almost always protected, and insurance will almost certainly pay out for deaths caused by COVID-19. According to officials from life insurance firms and business associations, there are a few exceptions.

Potential exceptions

Traditional life insurance plans, such as whole and term life, are likely to cover COVID-19-related deaths, according to representatives from LIMRA, State Farm, and Farmers New World Life (part of Farmers Insurance).

There are, however, a few exceptions. An insurer would refuse a claim for a coronavirus death, for example, if the policyholder:

I filled out an application that was either incorrect or incomplete. Claims may be rejected for a variety of reasons, including failure to disclose travel plans or lying about one's weight or income. If you die within the first two years of coverage, an insurer will usually conduct a more rigorous investigation of your claim and initial application. Also after the two-year life insurance contestability period has expired, an insurer may refuse to pay a claim if false information is discovered on the application. Take your time when filling out an application, be honest, and ask questions if you don't understand what's being asked.

Insurance premiums were not charged. If you die before your policy is reinstated after it has lapsed due to nonpayment, your recipient is unable to earn a payout. When a premium payment is late, life insurance providers sometimes grant a 30- or 31-day grace period.As long as you pay the insurer during this period, the policy will continue. During the coronavirus pandemic, insurers may extend this grace period; in fact, some state regulators are requiring it. Contact the insurance agent before your fee is due if you're having trouble making payments. If you don't apply for reinstatement and your insurer accepts, your insurance policy will end. You will need to show that you are not a liability to insure in order to be reinstated.

I just purchased an accidental death policy. Accidental death and dismemberment insurance, or AD&D insurance, is intended to protect you in the event of an accident. It does not compensate you if you suffer as a result of illness or disease. AD&D coverage is often applied as a rider to a regular life insurance policy. In that case, the standard policy will also cover a death caused by COVID-19.

How to file a life insurance claim

Following these measures after a policyholder dies, the beneficiary must file a life insurance claim:
  • The death certificate should be obtained in several copies.
  • For claim documents, contact the policyholder's representative or the insurance firm.
  • Send the relevant records, along with a certified copy of the death certificate, to the address below.

Following the filing of a petition, the beneficiary can choose whether to collect compensation in one lump sum or in installments.

Other life insurance policies

People who are working at the time of their death can be covered by their employer's community term life insurance policy. When a policyholder dies, the insurer usually contacts the survivor, but if you know the insurance company's name, you can use the procedure outlined above to file a claim.

Spouses, minor and disabled children, grandchildren, parents, and ex-spouses may be eligible for survivor compensation from the Social Security Administration.

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