COVID-19 is a novel virus that has caused many people to become sick. The number of COVID cases has been increasing exponentially since it first appeared in Canada. It’s not just impacting those infected, but also life insurance companies and brokers, as they try to predict how much risk they are taking on by insuring people who may be at an increased risk of developing COVID. This blog post will discuss the impact COVID-19 has had on life insurance so far and what we can expect in the future.

COVID-19 and Life Insurance

COVID is an infectious virus caused by a newly discovered coronavirus. The symptoms can range from fever and dry cough to requiring hospitalization.

COVID-19 impacts life insurance for those who have it because they are at higher risk for developing pancreatitis and diabetes mellitus type II when compared to those who do not contract the virus. It is estimated that life insurance premiums will increase by about $2000 for anyone with COVID-19 which is a major expense to take on.

Deaths Related to COVID-19 are Covered by Life Insurance

The good news is that deaths related to COVID-19 are covered by life insurance. It may seem like a morbid topic, but life insurance is meant to protect you from the worst-case scenario.

COVID-19 is a virus, so life insurance would cover the cost of burial or cremation for those who die from COVID-19 related deaths. If you have life insurance, a COVID-19 related death would not affect the amount of coverage needed. Those who die can be buried or cremated with no out-of-pocket costs to their family members.

Life Insurance companies offer many different types of insurance policies that cover different things, so it is important to talk with your agent about the benefits and limitations of each type and what is covered.

Life Insurance Prices After COVID-19

Although certain life insurance policies have an increased price for new applicants that are at risk of COVID-19, the prices haven’t increased for the most part. The main reason is because life insurance companies are more concerned with living COVID-19 patients than they are of those who have died. This means that, if you fall under the category of “at risk,” your rates will increase but not as drastically so long as it’s been at least a year since diagnosis and treatment.

The price for “at risk” patients will depend on the type of policy they are looking for. For instance, if someone who is “at risk,” according to COVID-19 standards, wants a policy which provides coverage in exchange for premiums during their lifetime but has no cash value at death, the rate increase would not be as high. If you’re an “at risk” type of person and you want to purchase a policy that provides coverage in exchange for premiums during your lifetime but has some cash value at death, the rate increase might be higher.

Typical life insurance rates vary depending on factors such as age, gender, health condition, location and more. But one thing is clear: although COVID-19 is impacting the life insurance industry, the prices haven’t increased as much.


COVID-19 had a huge impact on the world, and even on the life insurance industry. This novel virus has changed how many people think about their mortality. If you are considering purchasing life insurance or want to know more about whether your existing policies will cover this virus, then feel free to get in touch with a life insurance agent.. They’ll answer all your questions and help you navigate the changes brought by COVID-19 so that you feel comfortable making an informed decision before signing up for coverage.

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