06
May

Do life insurers pay insurance claims for long COVID ?

Each life insurer will issue a Product Disclosure Statement (PDS) that contains the details of the terms that must be met for a claim to be paid for an illness, injury or disability. The PDS must be considered before buying insurance. Each PDS will differ, meaning the coverage offered by each insurer will differ. An insurance broker or adviser like Experien Insurance Services can help explain what is covered by each insurer and what may be best for your own needs, circumstances and obligations.

Most life insurers still offer clients coverage for claims from new applicants for the novel coronavirus (COVID-19) – subject to the terms of the PDS. For example, for income protection insurance, a claim will be subject to the waiting period and the severity of the illness. Most do not currently contain any general exclusions in relation to epidemics or pandemics as at May 22. For these policies, if you were to contract COVID-19, you can lodge a claim as you would for any other illness. This includes any Life, Total and Permanent Disability (TPD), Critical Illness, Child’s Critical Illness and Income Protection cover types.

For some applicants, there may be a specific exclusion noted on your plan schedule (e.g. a travel exclusion), and if so, then this may impact your eligibility to claim for COVID-19. And if you are currently ill with COVID-19, then an insurer is most likely going to defer consideration of your application until you are well again. As with all claims, all disclosure obligations must be met as well as the terms of cover in order to be eligible for a benefit payment.

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The information provided contains general information and examples and does not take into account your personal objectives, financial situation or needs. Note that the policy wording will differ from insurer to insure and loadings, exclusions and other limitations may apply by the insurer to each applicant on a case by case basis.

Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. See our website for our Financial Services Guide.  Always read the Product Disclosure Statement issued by an Insurer before considering insurance