You can be on Entrepreneur’s cover!

How COVID-19 Could Affect Your Life Insurance Coverage It's mostly good news.

By Brian Greenberg

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

courtneyk | Getty Images

The coronavirus pandemic has many of us thinking about worst case scenarios. It's only natural that people are considering whether, in the event of their absence, their loved ones would be financially protected. If you're reading this, you've probably given it some thought yourself.

Here's the good news:

If you have an active life insurance policy and you were to die of a pandemic illness such as COVID-19, your family would receive the death benefit — even if you had traveled to an area with a known outbreak of the coronavirus.

The only situation in which that might not be true is if you were just recently approved and you failed to disclose certain information on your application about your travel plans and/or exposure to the coronavirus.

Also, if you keep your active life insurance policy current by paying your premiums on time, the insurance company can't raise your premiums if you get sick with COVID-19.

And here's some more good news:

If you don't have life insurance coverage now, you can still apply. It just might take a little longer to get approved, depending on where you live and what your circumstances are. If you're in good health, there shouldn't be any other concerns.

If you're planning to travel to a country where a significant number of COVID-19 cases have been reported, you should probably wait to complete your application until after you've returned.

If you've recently traveled to a country with a high concentration of COVID-19 cases, the insurance company you're applying to might suspend your application for up to 30 days, or possibly longer in some cases. The insurer might also ask for a statement of good health.

Related: Why Life Insurance Is Vital for Entrepreneurs

If you test positive for the coronavirus, there's still good news:

You can still apply for coverage, although you can expect the insurance company to postpone any decisions on your application for 30 days or so, until you've made a complete recovery.

It's possible that some insurers could decide to reject applications for people who are infected with the coronavirus, even if they have no symptoms. We are closely monitoring that possibility.

We don't yet know how insurers will determine the premiums on new policies for people who contract the coronavirus. Naturally, those who develop a severe case of COVID-19 and experience long-term effects from the illness can expect to pay a higher premium because they will receive a lower health classification. But for those who have only a mild case and make a complete recovery, we anticipate that the increase in premiums would be relatively minimal.

We can't emphasize enough how important it is to be 100 percent honest on your application. Otherwise, your beneficiaries may not receive the death benefit — and that's the whole point of getting a life insurance policy.

Related: Why Life Insurance Has to Be Part of Your Wealth-Building Plan ...

Brian Greenberg

CEO of Insurist

Brian J. Greenberg has founded businesses in the ecommerce, marketing and financial sectors. He has generated over $50 million in revenue from his businesses, collected over 10,000 reviews and testimonials from customers and is the author of The Salesman Who Doesn’t Sell.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Personal Finance

How to Get a Lifetime of Investing Experience in Only One Year

Plus, how day traders can learn a lesson from pilots.

Branding

94% of Customers Say a Bad Review Made Them Avoid Buying From a Brand. Try These 4 Techniques to Protect Your Brand Reputation.

Maintaining a good reputation is key for any business today. With so many people's lives and shopping happening online, what is said about a company on the internet can greatly influence its success.

Travel

Save on Business Travel with Matt's Flight's Premium, Only $80 for Life

This premium plan features customized flight deal alerts and one-on-one planning with Matt himself.

Science & Technology

Here's One Reason Urban Transportation Won't Look the Same in a Decade

Micro-EVs may very well be the future of city driving. Here's why, and how investors can get ahead of it.

Marketing

I Got Over 225,000 Views in Just 3 Months With Short-Form Video — Here's Why It's the New Era of Marketing

Thanks to our new short-form video content strategy, we've amassed over 225,000 video views in just three months. Learn how to increase brand awareness through short-form video content.