October 27, 2020

COVID-19 and Life Insurance in Canada

In March 2020, the World Health Organization (WHO) declared COVID-19 a pandemic. The world has been tackling the rapidly spreading virus, and anticipating the social and economic fallout. In Canada, the federal government has closed international borders and several provinces have mandated that only essential services operate.

It’s a scary and lonely time. But, while our lives have been forced to slow down, it’s important to plan for the future in case the unexpected happens.

For frontline health workers—nurses, doctors, and personal support workers— the risk of coronavirus infection is higher because of exposure to infected persons. Travel to high-risk countries and contact with positive cases increases your risk of contracting the virus, too. While the government has provided instructions on how to keep your family safe and healthy during this time, no one really knows what will happen when we come out of the fog. Let’s look at some common questions about life insurance in Canada during this uncertain time.

Do life insurance payouts cover deaths caused by COVID-19?

Under existing life insurance policies, all causes of death are covered (except for suicide within the first two years). If you already have life insurance, you will be covered for any claim related to COVID-19, regardless of where you travelled, how you contracted the virus, or whether you took any preventative measures.

Do new plans cover deaths caused by COVID-19?

At this point, the same rules apply for new life insurance plan activations during the pandemic. However, insurance companies are doing rigorous checks to make sure you aren’t a carrier of coronavirus. For this reason, you’ll likely have to answer more questions about recent travel, and if you’ve been to any high-risk places, like China or Italy in the recent past. In some cases, insurers may postpone decisions to approve a life insurance plan.

How can I get life insurance while practising social distancing?

We hope that you are staying safe at home as much as possible during this time. Part of the reason we started Insur Simple was to make it easy and safe to access life insurance, no matter where you’re located. Getting insurance quotes online is a great way to compare plans, get all the information, and get insured quickly. Read more about the types of life insurance available, and get trusted advice at the touch of a button.

I have coronavirus. Can I get life insurance?

In most cases, insurance companies will not insure anyone who tests positive for COVID-19 until they’ve been cleared by a doctor.
I was insured through my employer, but lost my job because of COVID-19. Am I still covered?

Unfortunately, the pandemic has caused small businesses and others deemed non-essential services to shutter their doors, even temporarily. Many have lost their jobs and in most cases, the life insurance their employer provided. Usually, life insurance provided through employment is not portable. For this reason, it might be a good option to supplement this insurance with an additional plan. If you’ve been laid off, and are in good health, you can find a plan that works for you today.