Door Might Close on life insurance - COVID-19

Original Article Can be located Here from Forbes below is a summary of article 

Forbes published an article on March 30, 2020 in regards to COVID-19 (Coronavirus) and life insurance companies response to the issue.

As a result of the pandemic it’s bringing lots of unknowns to their desks. Main reason is mortality rate or actuarial table for COVID-19 is unknown at the moment which is a key element to determine price of an applicant.

New Speed Bumps in the Life Insurance Buying Process

As a result life insurance companies are asking more questions and increasing the underwriting (approve/decline) time on applicants to lower risk of unknown death rate of COVID-19. For the record it normally takes about 4 weeks to approve or decline an applicant during the underwriting phase.

Underwriting Process: Tying to Get Doctors’ Records

During the underwriting process life insurance companies request medical records from applicants doctor. Essentially this allows them to verify nothing was missed on application which could approve or denny you coverage.

Unfortunately most doctor offices don’t have the necessary staff to provide such records in a timely or organized manner.

Until these records are received policy is in a stalemate.

Underwriting: International Travel 

One of the questions in the application asks if applicant plans to go on international travel. In previous years they would postpone an application for anyone traveling to a country at level 4 (“Do not travel”) by the State Department.

The only issue now is that the whole world is technically at a level 4 with all the current quarantine restrictions.

Majority of  life insurance companies are responding by delaying all applicants who plan to travel outside the U.S. (in the near 60 days) or whom recently returned. It should be expected that your application can be postponed for 30 days after your return.

Pacific Life, for instance will postpone the application of anyone who will or intends to travel internationally in the future. Once applicant returns and waits 30 days to test for COVID-19.

You might be asked if you have been exposed to COVID-19

Will cause delay in application process if it’s a yes.

Are Life Insurers Shutting the Door? 

This is the big question at the moment.