As the COVID-19 pandemic has spread, we’ve been reminded that illness and death can come at any time, and that has some people thinking seriously about life insurance.
If you’re wondering if you have enough life insurance, you may be asking yourself if you can even get life insurance during the pandemic. Read on for the answer to that question and more.
I’m not sick, but could COVID-19 affect whether I can get life insurance?
While neither the application process nor the underwriting criteria has changed substantially during the pandemic, some companies have added another step, asking applicants if have COVID-19.
With many agents offices closed, can I just apply online?
Yes. You can start the process online. QualityTermLife offers online quotes from dozens of A-rated insurance companies. You can always call to have a conversation about your options, budget and coverage.” Once you are submitted, all paperwork is completed online and on the phone with the insurance company.
But will I have to get a physical exam?
In many cases, no. Most insurance companies set a coverage amount – anywhere from $100,000 to $500,000 – that can be applied for without a physical exam. Most insurers have a streamlined underwriting process. If you are younger than age 50 and in reasonably good health, you may only have to do a phone interview to answer questions about your medical history.”
However, if something comes up in your interview that requires closer inspection, the company could require a simple medical exam that can either be completed in your home or in a testing facility. Of course, they are taking every precaution to make sure people won’t be exposed to the virus (COVID-19).
Life insurance is one of those things many of us don’t like to think about. Instead of looking into all the ways that life insurance could benefit us, we buy into the myths and misconceptions that tell us life insurance is too expensive, too complicated, or simply unnecessary.
The truth is, life insurance is none of those things — but it is really important. If you’ve been avoiding life insurance because of these myths, it’s time to learn the truth.
Top 5 Life Insurance Myths
Life insurance is expensive
Are you convinced you can’t afford life insurance? If you think life insurance costs are comparable to health or car insurance rates, you’re in for a pleasant surprise: If you’re a healthy non-smoker in your 30s, you could pay as little as $222 a year for $500,000 in coverage. That’s about $19 a month, or roughly the cost of a restaurant meal.
I can’t get life insurance because of a pre-existing condition
Many people pass on life insurance because they think that their pre-existing medical condition makes them too unhealthy to be accepted by insurers. The truth is that medical progress and the availability of preventative programs now allow many people with chronic conditions to live long and productive lives.
In step with that, life insurance companies will even offer preferred rates to people with health issues such as anxiety, asthma, depression, high cholesterol, hypertension, weight problems, sleep apnea and others.
I don’t need life insurance while young and single
Buying life insurance when you’re young and healthy can land you a better rate, but do you really need life insurance so soon? Even if you’re healthy, and childless, life insurance may still be a good idea. Accidents can happen any time; if they do, you’ll want to leave your family enough money to pay for a funeral and wrap up your affairs. If you have debt that’s cosigned by another person, such as student loans, life insurance is especially important.
Stay-at-home parents don’t need life insurance
There’s no question that life insurance is critical for your family’s breadwinner, especially if you have kids at home. However, even stay-at-home parents should be protected by a life insurance policy. The loss of a stay-at-home parent can be a huge hit to a family’s finances; not only must the surviving parent pay medical and funeral expenses, they also have to pay for childcare now that their spouse is gone. Life insurance covers these expenses so your family doesn’t suffer.
You need 10 times your income in life insurance coverage
10 times your yearly income is a commonly cited rule of thumb when it comes to buying life insurance. But rather than relying on simplistic guidelines, you can accurately estimate your life insurance needs by using a detailed online needs calculator to determine the amount you should get. It will take into account such things as lost income, debt obligations, the cost of college education, and funeral costs to determine how much money your family needs going forward.
While life insurance can seem like an unnecessary expense when you’re just trying to keep up with the monthly bills, buying life insurance is one of the best things you can do for your family’s financial security – just like you do when insuring your car, your home, and your health.
When you’re protected by life insurance, you can rest assured that your family will be cared for no matter what happens.
About the author, Nicole Rubin
I worked in the health insurance industry for years. Every day I fielded questions from people concerning their coverage and medical bills. I learned a lot about how the industry works, the limitations and challenges health insurance companies face, and the limitations and challenges faced by their customers.
Though a lot has changed since I worked in health insurance, I’m still very interested in the industry and the ongoing debate over how medical coverage should be handled in the U.S. I created Insureabilities to provide up-to-date information on the state of health insurance in the U.S.
John Hancock announces John Hancock Aspirewith Vitality, a new, first of its kind term life insurance designed specifically for Americans living with diabetes, in collaboration with Verily, an Alphabet company, and digital healthcare company Onduo.
All John Hancock Aspire customers will also have access to an enhanced version of John Hancock Vitality along with potential to save up to 25% on their premiums.
John Hancock Aspire offers customers living with diabetes life insurance paired with an online program that provides coaching, clinical support, education, and rewards to help manage their health.
Onduo Technology: Qualifying John Hancock Aspire customers with type 2 diabetes will be eligible to access Onduo’s virtual clinic and receive a blood glucose monitoring device. When used in conjunction with the Onduo app, it provides insights into the user’s diabetes management. Onduo’s virtual care team, made up of diabetes professionals, offers personalized guidance and support regarding diet, activity, lifestyle habits and medication management. Onduo users can earn points to further boost their overall Vitality rewards and lower their premiums.
“The life insurance industry hasn’t traditionally served people living with diabetes well. When we help customers manage their diabetes by providing virtual care, education, support, incentives and rewards, we’re not only creating value for them, but also for our industry and society as a whole. That’s why we’re thrilled to work with innovative industry leaders, Verily and Onduo, to offer access to people living with diabetes to this first-of-its-kind offering. It’s time our industry started delivering more tailor-made solutions that truly help our customers.” – Brooks Tingle, President and CEO of John Hancock.
“This dynamic partnership with John Hancock unlocks the full potential for the Onduo platform, empowering people living with Type 2 diabetes to co-produce their own health at home and in mobile environments and rewards them for doing so. Through this initiative, Verily and John Hancock are pushing the envelope on the role life insurance can play in both providing financial security and helping people live longer, healthier lives.” – Andy Conrad, CEO, Verily.
John Hancock Aspire will be available to customers on November 18, 2019.
