Latest on Covid-19, Vaccination, and Life Insurance

This week has been tough for many, with COVID firmly back on the table and news on the new variant, Omicron. Just as many of us thought that we were getting back to normal, it’s now difficult to come to terms with restrictions coming back for many.

We often get asked about ‘how life insurance works with COVID’, and the rules around vaccinations. Many of us have had first and second doses of the vaccine, and some now have received their booster.

Here are answers to some of the most common questions that people are asking us about COVID and vaccinations.

Will I be asked about vaccinations when I apply for life insurance?

No insurers ask ‘Have you had a vaccination?’ as a standard question on a life insurance application. Currently, there are no plans to implement this question as far as we are aware.

You might be asked about vaccinations if you disclose a medical condition, such as Multiple Sclerosis, and this may have an impact on your application.

Will I be able to get life insurance if I haven’t had my vaccinations?

You’ll be able to get life insurance with most, if not all, life insurance providers without a vaccination, as long as you don’t have a pre-existing medical condition. If you have a medical condition then you might be asked about vaccinations with some insurers.

If you’ve not had your vaccination and you have a pre-existing condition, then some insurers might decline your application for life cover.

If you’ve applied for life insurance in the past and been refused for this reason, then it’s often best to speak to a specialist. It might be possible to get cover through some other providers, depending on your condition and your symptoms.

Do I need to have a booster to get life insurance?

There are no insurers currently asking about boosters as far as we are aware, and we haven’t heard about anyone planning to do this.

The situation is changing constantly so this rule may come in at some point, depending on your health and circumstances.

Will the new variant (Omicron) have any impact on life insurance or premiums?

Currently, life insurance premiums and underwriting criteria have stabilised since the rules were relaxed in Q1 2021. There is no talk yet of a change to criteria or pricing for life insurance, however, we await developments and statistics for Omicron.

There have been several new variants since March 2021, and none have caused insurers to re-visit rules, so we’re hopeful that nothing will change this time either.

Does having a vaccination have any impact on life insurance premiums?

As far as we are aware, there are no insurers who are currently pricing their policies lower for people who have received their vaccinations.

This would be a difficult element to introduce to life insurance pricing in our opinion so we’re not sure if this could be an option. Life insurance premiums haven’t changed much since pre-pandemic which is good for consumers and policyholders.

What about if I’ve had COVID and need life insurance?

When you apply for life insurance currently, you’ll be asked whether you’ve had COVID in the past 30 days or been exposed to it.

If you answer ‘Yes’ then you will be able to take out a new life insurance policy 30 days from the date you were diagnosed, or exposed to it. This is a safety precaution that was introduced in March 2020 by most insurers and is still in place today.

Will life insurance payout for COVID?

Yes, life insurance does not exclude COVID or anything related to it, so your family will be able to claim. There are no cases currently where anyone has had any problems resulting from claiming for COVID-related death.

Your life insurance should have been or will be underwritten at the point that you take out a policy. The only exclusion that most insurers will apply is suicidal death in the first 12 or 24 months of your new cover.

Current COVID statistics in the UK

Here are some of the main statistics for COVID in the UK (to November ’21) and life insurance claims:

COVID stats UK*

Total number of cases	10.2M
Number of COVID deaths	145,000

Vaccination stats UK**

People vaccinated – 1^st dose	50,963,718
People vaccinated – 2^nd dose	46,367,149
People vaccinated – Booster	18,215,535

COVID claims stats UK (2020)***

COVID claims paid in 2020	£202 million (equivalent to £553k/day)
Total COVID claims 2020	10,205 (individual protection)
Percentage (%) of claims paid	96% (individual protection)
Income protection claims paid	£2.4 million (individual protection)

*BBC News – Covid-19 in the UK: How many coronavirus cases are there in my area? – BBC News

**Coronavirus UK Summary – UK Summary | Coronavirus (COVID-19) in the UK (data.gov.uk)

***ABI News March 2021 – £202 million paid by insurers to help the families of those who have died due to Coronavirus ABI