Coronavirus: life insurance policies and private health insurance

Posted on: 16th April 2020 in Insurance

The world continues to grapple with the coronavirus pandemic, but there are ways to protect yourself. A life insurance policy and private health insurance give us peace of mind. Pandemics are nothing new. Neither is the need for insurance to provide protection. In fact, insurance has existed in some form for thousands of years. The Babylonians developed the first recorded system for distributing risk around 1750 BC. Merchants who loaned money to buy a shipment could pay an additional fee. In exchange, the lender would guarantee to cancel the loan should anything happen to the merchants’ goods. Insurance has changed a lot since then. One thing that hasn’t changed is the underlying reason we buy insurance – for peace of mind during uncertain times.  For most of us, 2020 has been a year filled with uncertainty. Here, we take a look at the coronavirus and what it means for your insurance.  

Life insurance – policy payouts

Current events do not seem to have affected payouts for a life insurance policy. The Association of British Insurers (ABI) has said that claims made as a result of coronavirus will pay out in the same way as any other claim. Payouts are still subject to policy terms and conditions. If you have any questions, you should speak with your policy provider.  

Life insurance – new customers

If you haven’t got a life insurance policy, you can still apply. Insurers are still accepting applications and prices remain stable. However, the application process has changed slightly. Some insurers now ask specific coronavirus questions. If medical evidence is required, it can result in your application being delayed.  

Missed payments and payment holidays

Missing premium payments can cause issues if you need to make a claim. Different insurers will take a different approach to missed payments. Insurers typically give you a grace period before ending your cover.   In the current climate, some of us may be looking to cut back on costs. Payment holidays can help to ease the financial burden. Some insurers may offer payment holidays, depending on the terms and conditions of your policy. Individual insurers will have different policies on payment holidays. If you would like to find out more, you should speak with your policy provider first. You can find more information about life insurance policies on the ABI website.   

Private health insurance

Private health insurance is where things get a little complicated. The NHS has cancelled all treatments which are considered non-urgent. Dealing with urgent cases on top of the current pandemic has put an enormous strain on the public health sector.  To assist the NHS, private providers are taking on some of their urgent cases. So far, around 20,000 staff from private hospitals and 8,000 beds are being used to support the NHS. The involvement of private facilities may increase as the outbreak develops. This will have a growing impact on private healthcare as a result.  

Benefits

Although private healthcare patients are having non-urgent procedures pushed back, there are still benefits to private health insurance. These include:

• – Access to breakthrough treatments not available on the NHS
• – Potentially shorter wait times when things return to normal

Customers with private health insurance can also contact GPs and consultants 24 hours a day. There is good news for those looking to take out a private health insurance policy. Prices remain steady, and this is something the ABI expects to continue. For more information about private health insurance, visit the ABI website.  

Reassurance through insurance

As we said, products such as private health insurance and a life insurance policy can bring peace of mind during uncertain times. With over 20 years of experience, Holborn can help you find the right cover for you and your family. To speak with one of our experts, contact us using the form below.