Taking out life insurance during a crisis: 4 things to know
Article revised on 21 May 2020
Life insurance may not be the most exciting topic of discussion. However, such a protection requires very little time and can save you a whole lot of stress in the long run.
In these times of crisis, we’ve simplified the registration process to allow you to get life insurance coverage despite the constraints caused by the pandemic.
Tempted to put it off until later? Consider these 4 elements:
1. Your coverage needs remain
Some things never change, even during a pandemic. Your need for life insurance is one of these things. Despite the context, you should still make sure you have life insurance coverage.
If, after completing a financial needs analysis (FNA), your financial advisor considers that you need life insurance coverage to secure your succession planning, there’s no need to wait.
Need help? Your advisor is there to support you in the process and to make light of all that insurance mumbo jumbo. Plus, this can all be done via videoconference.
2. Insurers are adjusting to the new reality
Usually, in a traditional life insurance underwriting context, the insurer must follow several steps. That’s why you would normally undergo a paramedical examination and a few lab screenings, like a blood test.
Insurers have now reduced their requirements in that sense. There is now a more in-depth medical form to fill out, without the need for a physical. It’s therefore easier and faster to get a life insurance policy with a death benefit under one million dollars, based on an insurability claim.
3. Certain requests may be delayed
Any life insurance request with a death benefit over one million dollars is delayed, however. For these policies, you’ll have to wait for the regular medical tests to resume.
For those whose insurance needs exceed this threshold, it is nevertheless recommended to apply for the first million coverage requested.
4. Combine temporary and permanent insurance
Pandemic or not, your life insurance needs remain. However, you might need to make compromises based on your financial situation. That said, there are plenty of winning strategies to meet your needs and your budget. For instance, you can combine a temporary insurance rider with a permanent life insurance agreement.
Temporary life insurance is just a fraction of the price of permanent insurance. However, it only provides coverage for a limited amount of time, ranging from 10 to 35 years. The cost of the premium remains the same for the chosen contract term, and the contract can end on its expiry date or be renewed for a higher cost at the end of the term.
And there you have it! Ready to sign up for life insurance? Contact a financial security advisor and let us help!