Vaccine rollouts are now happening worldwide and while this should be a cause for celebration, it has also led to the emergence of vaccine related scams. The latest concerns life insurance policies but fortunately, the scam has been debunked and guidance has been issued on how insurance rules are actually impacted by vaccination.
I’m Insured, the Insurance brokerage, has confirmed that having the Covid-19 vaccine will not affect life insurance cover.
This declaration comes after a fake communication, purporting to be from Allianz, has falsely claimed having a vaccine will invalidate life insurance policies.
The fraudulent document states: “If you consent to taking a Covid-19 vaccine your consent is ‘self-inflicted’, it was your choice to have the experimental medical procedure and therefore insurance will not cover any damage or death.”
This document was originally spotted by Allianz in Australia but it has also been sent to UK consumers.
Additionally, I’m Insured warned there has been “a huge” amount of speculation on social media, spreading the message that life insurance companies will not pay claims if a person dies within one year of receiving a vaccine, and taking the vaccination will invalidate any life insurance policies.
Gwilym Pugh, life insurance expert at I’m Insured, confirmed this is simply not true.
He said: “The Association for British Insurers has been clear to point out that having the Covid-19 vaccine won’t affect your cover.
“Although life insurance providers have started asking about an applicant’s history of coronavirus, none have made steps to exclude it as a claimable event, nor have they raised any issue around having or not having the vaccine.
“Life insurance policies very rarely include exclusions and there are none that involve non-payouts for pandemics or viruses. In fact, any death is a claimable event, which includes those for Covid-19.”
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In light of any confusion on this, I’m Insured went on to answer some of the biggest FAQs around coronavirus and life insurance.
Will my life insurance pay out for Covid-19?
This is likely one of the biggest concerns for those with insurance policies but fortunately, consumers should have nothing to worry about.
I’m Insured detailed: “Yes. All the leading insurers in the UK have confirmed that, if you have life insurance in place and pass away due to COVID-19, they will pay the claim if all the other terms and conditions of the policy are met.
“This normally means that your premiums must be up to date and you answered the underwriting questions accurately on your life insurance application.
“This means, assuming you were honest on your life insurance application and have paid your premiums, you have peace of mind that your beneficiaries should receive a lump sum if you were to pass away because of coronavirus.”
Why would an insurer not pay a COVID-19 claim?
While insurance payouts should be issued, there are a small number of circumstances in which they may not, as the following explains:
- “The policy had lapsed because you did not keep up with the premiums.
- “You did not answer the underwriting questions on the application form honestly and accurately. For example, you may have not revealed that you had specific ailments or symptoms, or you were a smoker but you said that you did not smoke on the proposal form.”
Can I get life insurance if I’ve had COVID-19?
I’m insured concluded with guidance on what people should expect if they’ve already had coronavirus: “Yes. it is possible to get life insurance if you have previously been diagnosed with a range of conditions.
“The important point to note here is that you must be honest and accurate when completing the application form for the cover. As we saw above, if you don’t disclose symptoms or previous medical conditions, this could invalidate your policy when a claim is made.
“So, you will have to disclose that you have had COVID-19 on your proposal form and outline the severity (or otherwise) of your symptoms. Common questions that you might encounter on the application form include:
- Have you tested positive for coronavirus?
- Have you had any symptoms of coronavirus?
- Have you been in direct contact with anyone who has been diagnosed or suspected of having a coronavirus?”
If you answer “yes” to some of these questions, a decision regarding your cover may be delayed until you have recovered. The decisions may vary from insurer to insurer.”
It should also be noted the Association for British Insurers has assured that having a vaccine will not affect ones cover.
Coronavirus has, unfortunately, been jumped on by fraudsters as it was reported recently over 6,000 cases of covid-related fraud and cybercrime had been recorded by the UK’s police forces during the pandemic.
Action Fraud detailed around £34.5million had been stolen from consumers since March 1 2020 in England , Wales and Northern Ireland.
Additionally, UK Finance also recently issued a warning on fraudsters targeting the British public as lockdown and travel restrictions are eased.
Katy Worobec, the Managing Director of Economic Crime at UK Finance, commented: “Criminals have been capitalising on the pandemic to commit fraud, and the easing of lockdown restrictions provides another opportunity for them to target victims.
“As you start booking holidays and planning social activities, don’t let criminals take you for a ride. Follow the advice of the Take Five to Stop Fraud campaign and always visit websites you’re buying from by typing it in to the web browser – avoid clicking on links in unsolicited emails or text messages. Be wary of any requests to pay by bank transfer when buying or booking services online, and instead use a credit card or the secure payment options recommended by reputable websites.”