COVID-19 shifted the way that many Canadians conduct their day-to-day lives and run their businesses. People started working entirely from home and some entrepreneurs were even able to shift their small business operations completely online, which ultimately helped mitigate the effect of the deadly disease in our communities.
Despite these precautions, anxieties continue to rise as Canadians consider the impact COVID-19 could have on their family’s financial future. If a mother or a father contracted COVID-19, would their family and wealth management plan be protected?
That’s probably why, as families cut spending in other areas, they continued to see value in spending money on their monthly life insurance premiums. According to a recent study, 64% of Canadians believe that life insurance is one of the most important types of coverage during the pandemic. And 63% of the people surveyed believe that life insurance is more important now, during the pandemic, than it was before the pandemic began (1).
If you have been thinking about purchasing life insurance or disability insurance or critical illness to protect your family, consider the following points as you consider what type of plan would benefit you.
Your Family Deserves To Be Protected Today
COVID-19 has put into perspective the importance our own health has on the financial wellbeing of our family. It has also made us think about how our lives can change in a blink of an eye. The truth is this: your family deserves to be protected no matter what happens to you or your spouse. And it is important to put in place mechanisms that will serve as an umbrella to protect your family from any rainy day that may arise. The pandemic serves as a painful reminder that life for many people can change in an instant, and so it’s best to protect yourself today before any bad news may arise tomorrow.
The Type Of Insurance You Purchase Matters
It is best to contact us for a more defined answer as to what a specific policy would or would not cover. But currently, there are no exclusions on COVID-19-related deaths in life insurance policies, meaning that in the event of a COVID-19 related death, life insurance will be paid as usual. Disability insurance is typically designed to cover the loss of earnings that may occur when you are unable to work because of an illness or injury. If there is a COVID-19 diagnosis that leads to the loss of income, the insurance company will pay out the benefit. Keep in mind that there is a waiting period before the payments begin for most disability plans.
While critical illness insurance is often an important part of a family’s security, this type of policy will not provide a payout if you are diagnosed with Covid-19. This is due to the fact that COVID-19 is not a defined critical illness under the terms of the policy. However, if contracting COVID-19 leads to a heart attack or other life threatening event, then you would be covered under a critical illness policy.
As we mentioned before, it is best to go through the different issues with a professional who can walk you through the details of a policy before you decide to purchase and help you understand what is and isn’t covered.
COVID-19 And Your Insurance Coverage
Rumours circulating that receiving the COVID-19 vaccine would make a person ineligible to receive life insurance or may be denied benefits are incorrect.
The Canadian Life and Health Insurance Association (CLHIA) issued a statement earlier this year stating that it had become aware of the rumours and responded that these “claims are incorrect and have no basis in fact whatsoever.” The trade association further stated that “all of Canada’s life and health insurers are supportive of Canadians receiving government approved vaccinations to protect themselves from serious illness and death.(2)
Additionally, rumours suggesting that collecting CERB could impact your insurance eligibility are incorrect. Collecting CERB won’t affect insurability.
We Are Here For You
COVID-19 has been hard on all our Canadian communities and families. We want to make sure your family and your wealth management plan are both protected as we hopefully move past the pandemic. We are here to help you protect what you love. Contact us to learn more about how we can help you!
References:
(1) https://www.prweb.com/releases/research_finds_canadians_value_life_insurance_more_than_ever_duri ng_pandemic/prweb17571662.htm
(2) https://www.clhia.ca/web/CLHIA_LP4W_LND_Webstation.nsf/page/CFFB22AA8524D58385258692004D DFFC!OpenDocument.