Well, what a year it has been so far. A testing time for all with the uncertainty with if we should leave our homes or go and visit our friends and family although with all of this change in how we live our lives the world of protection world has stayed pretty much the same. With Covid-19 focussing our minds onto our own health, when bicycles, paddle boards and running trainers all became scarcer than toilet roll we suspected there may be a change in the insurance world however insurers have kept their products and premiums as they were before with a little additional underwriting.Â
Life Cover is still doing exactly what is says on the tin with paying a lump sum in the event of death or a terminal illness (less than 12 months to live). The question set has slightly increased to ensure that you have not tested positive of Covid-19 in the last 30 days. Even if you have been given a positive diagnosis, this does not mean you will not get protection, the policy will be postponed until you are 30 days since diagnosis.
Critical Illness is still paying a lump sum in the event of being diagnosed with a critical illness. This may have a longer postponement if you suffer from cardio/breathing problems which are ongoing treatment/medication are been given a further underwriting. We have had cases where our client is looking to get insured, but due to the current climate, are having to wait until this all blows over.
Income Protection, again, is still offering the same level of cover, the deferment is still the same as the symptoms for Covid-19 only lasts two weeks. When discussing people’s income, we get the response ‘this is going to be expensive’ which is a misconception. Income Protection, if anything, is more favourable and would ensure that, if you were unable to work due to illness or injury for a long period of time, your income would continue to fulfil your lifestyle. If you are on furlough, then no cover would be also postponed until you return to work.
In summary, now is a great time to look at reviewing your protection, making sure what you pay a monthly premium for matches what you require. If you currently do not have any protection in place, then with not knowing what the next six months brings, we can look to ensure you have sufficient level of cover in place, based on budget and circumstance.
