Life insurance covers death from any cause. However, some companies make certain exceptions, such as epidemics or pandemics. Therefore, it is essential to review the contract to find out if your life insurance covers the coronavirus.
There are already more than 2 million people infected by the coronavirus worldwide. In Spain, there are already close to 200. 000 infections and 21. 000 dead. Information about the virus monopolizes the media and social networks.
In this context, many doubts have arisen about how to deal with COVID – 19 or coronavirus. The first questions were about health insurance; The employers' association of the sector in Spain, Unespa, confirmed that the companies will bear the costs.
After this, and given the spread of the disease, one more question arises: does life insurance cover the coronavirus? The answer depends on each company.
Which cases does life insurance cover
First of all, it is important to remember that these policies cover death from any cause. There are very few cases in which the insurer can refuse to pay compensation, so in most cases situations, nothing to worry about. Work accident, illness, traffic accident …: everything is covered.
However, not all companies work in the same way. There are some insurers that do not cover death in certain cases. To know if your life insurance covers the coronavirus, you must check that your policy does not exclude death due to epidemics or pandemics.
The difference between epidemic and pandemic
It is possible that your contract establishes that, in the event of death due to an epidemic or pandemic, life insurance will not cover it. Therefore, it is important to know the difference between these two terms:
– An epidemic occurs when a contagious disease spreads rapidly among a specific population, according to Doctors Without Borders. That is, affects many people in the same area for a certain time.
– A pandemic is an epidemic that has spread to large geographic regions . For example, when a virus spreads from one continent to another and crosses national borders.
Currently, the coronavirus is considered a pandemic . Of the more than 2 million diagnosed cases, the vast majority are already in the United States. Cases have already been diagnosed in some 190 countries, including Spain. The World Health Organization (WHO) raised the coronavirus to the category of pandemic last day 11, after the number of affected was China would have multiplied by 13 in just two weeks.
The exceptions in life insurance
In general, life insurance covers death from any illness or disease (cancer, heart attack…). In these cases, the only exception that may arise, as already mentioned, are epidemics and pandemics. If you want to know if your life insurance covers the coronavirus, you should check if your contract has that specific exclusion.
For the rest, there are very few scenarios that these policies do not cover , regardless of the company. However, it is interesting that you also know them:
Suicide during the first year
The Law 50 / 1980 establishes that only death by suicide is covered one year after signing the contract . That is, you must have paid at least one year of insurance to be entitled to compensation.
False or deceit in the medical questionnaire
When hiring any life insurance, the company carries out a questionnaire to the potential client. In it, asks you about all those circumstances that increase the risk of something happening (for example, if you smoke or have a chronic disease). He will also ask about the profession or hobbies, since practicing extreme sports or having a dangerous job increases the chances of something happening to us.
If the death occurs due to any cause that was omitted in the questionnaire, the insurer may refuse to pay . For example, if you said that you did not do extreme sports and you die while practicing one, your beneficiaries will lose the right to compensation. For this reason, it is very important to be honest in the questionnaire and answer truthfully . Thus, life insurance will protect us whatever happens.
The exceptional case of natural disasters
Insurance companies do not cover deaths in the event of extraordinary events , such as catastrophes or natural calamities: earthquakes, tsunamis, volcanic eruptions … The same thing happens in cases of a state of siege. derive from acts of terrorism or rebellion. However, this does not mean that those who have a life policy will lose compensation if they die in any of these circumstances. In these exceptional cases, the coverage passes to a public company, the Insurance Compensation Consortium . That is, even if the insurance excludes these circumstances, the user is protected by this entity.
Check your contract
Despite the spread of the coronavirus, it is important not to panic and comply with the recommendations of health institutions. However, it is inevitable to put yourself at worst and consider what would happen if we caught this virus.
In case you want to confirm that your life insurance covers the coronavirus, check your contract. Keep in mind that you can always compare and choose a better policy . Don't settle: get the peace of mind you deserve.