Are You Covered If You Get COVID-19 – Frequently Asked Questions

The world has been dealing with the spread of coronavirus for the last couple of years and there’s no sign when the COVID-19 pandemic will end, especially with new variants surfacing one after another. Getting insured or already being insured in this time of uncertainty is important, as it allows you to have Space to Breathe around your financial security. But what if you got COVID-19? Are you covered? Can you still apply for insurance if you got COVID-19? Does your insurance premium go up?

These are all good questions and we’ll be answering your questions regarding the impacts of COVID-19 on insurance here.

Should I get insurance during the pandemic?

Yes. Whether we’re in a pandemic or not, it is always advisable to be properly insured and to do so as early as you can. Insurance only becomes more expensive as you get older. Your future health also cannot be assured, so the best time to get insurance is when you’re still healthy.

The COVID-19 pandemic serves as an important reminder that unexpected events can occur in our life, and by having insurance coverage, you are providing a financial safety net for you, your loved ones, your profession, or your business. If you’re looking for insurance coverage, speak to one of our advisors.

Does having COVID-19 impact my application for insurance?

If you’re looking to apply for insurance but contracted COVID-19, your application may be postponed for 30 to 90 days post-recovery. If you came into close contact with someone who tested positive for COVID-19 or if you’re required to quarantine, you may also need to postpone your application.

The maximum age for applying for insurance varies between insurance companies, as well as how they view your medical history. All questions need to be answered truthfully including those around COVID-19. Insurance companies consider non-disclosure as an unforgivable offense and it’s better that you have a delay in getting insurance than having the claim denied complete in the future. If you had COVID-19, we could help you navigate with the underwriting, so that you can attain the best possible outcome with the best possible insurance plan that suits your needs and lifestyle.

Does getting COVID-19 affect my premium when I’m applying for insurance?

Like other medical conditions, the severity of an illness may impact your insurance rates. For the most part, if you become sick from COVID-19, show mild or short-term symptoms (like the seasonal flu), and make a full recovery, then expect to get standard coverage.

However, if you contracted coronavirus and you are dealing with serious long-term effects, you may be declined coverage or offered coverage with an extra premium, known as a rating, which in the grand scheme of things will be worth the extra cost.

If you haven’t applied for insurance yet and haven’t contracted COVID-19, now is a good time to apply.

Does getting COVID-19 affect my premium on my existing insurance plan?

For any of your existing individual, non-cancelable insurance plans, the insurance rates you are paying, along with your health classification cannot be changed by the insurance company if you contract COVID-19, work in a job with a higher risk of exposure to COVID-19, or travelled to a coronavirus hot spot.

Is COVID-19 covered under life insurance?

Yes, if you die from coronavirus-related complications, your beneficiary or beneficiaries will receive the death benefits under the policy as they would under any other cause of death. Although there can be exclusions for causes of death in life insurance policies, such as partaking in high-risk activities, there are no exclusions for pandemic-related deaths. Any exclusions that apply will be clearly stated in the policy.

Is COVID-19 covered under disability insurance?

Yes, if you test positive and are diagnosed with COVID-19, and it results in a loss of income or your inability to work, you will receive disability benefits once you qualify under the provisions of the policy. Qualifying includes satisfying the benefit waiting period, which is usually 90 to 120 days for long-term disability policies. A disability claim for COVID-19 related debilitation is processed as any other claim by filling the necessary claim forms and providing all necessary medical evidence requested by the insurer.

Is COVID-19 covered under critical illness insurance?

No, COVID-19 is not a critical illness or condition, so you will not receive critical illness benefits if you test positive for COVID-19. However, if it develops into a listed critical illness or condition due to COVID-19 complications, then that illness or condition will be covered.

Is COVID-19 covered under travel medical insurance?

Yes, a travel medical insurance plan will cover emergency healthcare if you contract COVID-19, whether it’s travel within Canada or outside of Canada. Coverage availability may be contingent on the travel risk related to the country you’re travelling to based on the global travel advisory from the government of Canada. Please make sure you check the global travel advisory before departing on your trip.

For example, if the government of Canada’s global travel advisory indicates “Avoid All Travel”, your insurance may not cover you. You may also not be covered if you are not vaccinated. Make sure to check your policy provisions carefully.

Are COVID-19 tests covered under travel medical insurance?

No, COVID-19 tests are not covered under travel medical insurance.

Are quarantine or isolation expenses covered under travel medical insurance?

Quarantine expenses and missed or rescheduled flight costs as a result of testing positive or border closures may be covered depending on the travel medical insurance plan. Make sure to check your policy provisions carefully.

Will the COVID-19 vaccine affect my insurance policies?

No, getting vaccinated will not affect your current insurance policies. Getting the COVID-19 vaccine also does not impact your ability to apply for new insurance coverage. Not being vaccinated, on the other hand, may preclude you from collecting benefits under certain circumstances due to the increased risk of severe complications related to contracting COVID-19. You can learn more about COVID-19 vaccines in Canada here.

What will the future of insurance look like?

Although Canada saw significant overall excess mortality during the pandemic, the percentage of excess mortality within those who have insurance is lower than that of the general population, as only healthy individuals can get insurance and much of the excess mortality attributed to the general population is within the group of older individuals and those with pre-existing conditions. We do not expect the pandemic to have a significant impact on life insurance rates, however, we have not yet seen the long-term effect of COVID on morbidity and disability. Insurers will be looking at the increased risk of death and long-term illness from COVID-19, along with the potential of future pandemics, and take all of that into account when pricing their insurance products in the future.

When it comes to getting insurance, you do not want to apply for a quick and easy one-size-fits-all policy. The pandemic has reminded us that our lives are unique and complex, and the best solution is an insurance plan that is personalized to fit your needs and lifestyle. You need expert advisors who can develop flexible product solutions that suit you and your family. For service that’s transparent and accountable, book a meeting with any of our Cove advisors. They will help you create Space to Breathe by doing insurance right.