Here are our most frequently asked questions by clients about Life Insurance policies, COVID-19 & Vaccinations
Australia is now in the middle of the COVID-19 pandemic and learning to live and work with lockdowns and public health orders.
With rolling lockdowns and much general uncertainty ahead, as we race towards the nation's next mass vaccination target, it's only natural people are looking for certainty and asking important questions about 'whether COVID-19 affects their life insurance policies in any way?'
Many of our clients have got in touch with questions about life insurance cover and how pending vaccinations might affect their rights to cover or a claim in the future.
Well, we have some good news to share.
Here are some of the most frequently asked questions we’ve received about life insurances and COVID-19 and COVID-19 Vaccinations.
Frequently Asked Questions about COIVD-19 Vaccinations and Life Insurance policies
Read in this article:
- Can I still buy a life insurance policy or income protection policy during the COVID-19 pandemic?
- Are front line Health Care Workers still able to apply for life insurances during the COIVD-19 pandemic?
- Can I still buy life insurances with my financial advisers over the phone without having to see anyone face-to-face?
- If I am currently in self-isolation due to possible COVID-19 exposure, can I still get life insurance?
- If I am planning on having my COVID19 vaccination, does this affect my existing life insurance?
- If I have an existing life insurance policy in place, does getting a COVID19 vaccination change my ability to make a future claim for any reason?
- Does my Income Protection insurance cover me if I can’t go to work because I am in a high-risk category or I am in self-isolation or I have to care for a family member with COVID-19?
- Still have more COVID-19 related questions?
- What? You don't have a financial advisor you can talk to yet?
- Frequently Asked Questions: COVID-19 & Insurance
Can I still buy a life insurance policy or income protection policy during the COVID-19 pandemic?
Yes. We’re open for business and so are our insurance providers.
Are front line Health Care Workers still able to apply for life insurances during the COIVD-19 pandemic?
Yes. The high quality life insurance providers who are members of the Financial Services Council (FSC) have made a commitment to ensure frontline healthcare workers are not prevented from obtaining life insurance cover purely through exposure, or potential exposure, to coronavirus. You can read more about this at the Financial Services Council website here.
Can I still buy life insurances with my financial advisers over the phone without having to see anyone face-to-face?
Yes. There is no need for a face-to-face meeting to get your insurances sorted.
Sapience Financial & the team from Unusual Risks Insured have been working with remote, regional and local Australian clients for over 20+ years - over phone, email or video chat (it's your choice).
If I am currently in self-isolation due to possible COVID-19 exposure, can I still get life insurance?
Yes, but you should expect a delay. Applicants who have tested positive for COVID-19, or who are waiting for a test result, may not be immediately eligible for cover and will usually have to wait to be released from isolation and in good health.
If I am planning on having my COVID19 vaccination, does this affect my existing life insurance?
No. It doesn't have any effect on your existing life insurance policy.
You are covered from the date your policy went into force, 24/7 world wide (apart from you travelling to declared war zones.)
If I have an existing life insurance policy in place, does getting a COVID19 vaccination change my ability to make a future claim for any reason?
No. High quality life insurance plans do not contain any exclusions in relation to epidemics or pandemics. This means you can make a claim in relation to coronavirus if required.
This includes any life, total and permanent disability (TPD), critical illness, child’s critical illness and income protection cover types.
Does my Income Protection insurance cover me if I can’t go to work because I am in a high-risk category or I am in self-isolation or I have to care for a family member with COVID-19?
Unlikely. Income Protection insurance policies are designed to protect and support you if you become sick or injured and cannot work.
They are not intended to cover situations in which you can't get to work (ie: due to fire or flood) or are not permitted to work (due to a public health lockdown order) or if you need to stop work for any other reason.
Pro Tip: Life insurance Underwriters and Actuaries in Australia are focused on the statistical risks of possible unforeseen sickness and injuries occurring. Simply put, they are more concerned with the statistical probability of a 1 in 3,000 chance of a blood clot occurring when using an oral contraceptive, than they are of a 1 in 300,000 chance (if you’re young) of an adverse reaction to a COVID-19 vaccination (or a 1 in a million chance of death).
Still have more COVID-19 related questions?
- Speak with your Doctor for Professional Health Advice.
- Speak with your Financial Advisor for Professional Personal Insurance Advice.
What? You don't have a financial advisor you can talk to yet?
Ooh well, we’d love to help you out with that and you can contact us below.
Frequently Asked Questions: COVID-19 & Insurance
Will a COVID-19 vaccination void my life insurance policy?
Absolutely not. There is no impact on your existing life insurance or your right to a future claim based on your vaccination status. In Australia, high-quality life insurance contracts are "guaranteed renewable," meaning as long as you pay your premiums, the insurer cannot change the terms or add new exclusions for pandemics or vaccinations after the policy has started.
Can I still apply for new cover if I’ve been exposed to COVID-19?
Yes, but you will likely face a temporary delay. If you have tested positive or are currently in self-isolation awaiting results, insurers will usually ask you to wait until you are fully recovered and released from isolation before they finalize your application. This is standard practice for any active viral infection.
What are the statistical risks of a vaccine reaction?
Life insurance underwriters look at the cold, hard numbers. Statistically, for a young person, the risk of an adverse reaction to a COVID-19 vaccination is approximately $1 \text{ in } 300,000$. To put that in perspective, the statistical risk of a blood clot occurring when using a common oral contraceptive is significantly higher, at roughly $1 \text{ in } 3,000$. Insurers are far more concerned with known, high-probability risks than with the 1-in-a-million chance of a vaccine-related fatality.
Does Income Protection pay out if I’m in lockdown?
Generally, no. Income Protection is a "disability" insurance. It triggers if you are physically or mentally unable to perform your duties due to illness or injury. It does not trigger for "social" or "legal" reasons, such as being prohibited from working due to a Public Health Order, a lockdown, or the need to care for a healthy family member who is isolating.
Call us today on 1300 137 403 or email us here for a no-obligation private chat about your situation.
Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn. Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.
