COVID-19 and your Personal Insurance

In light of the ongoing changes and uncertainty in relation to COVID-19, we wanted to provide information regarding personal risk insurances and answer some Frequently Asked Questions.  As always, if you have any further questions and need to discuss your current insurance policy, please feel free to call us.

Frequently Asked Questions – Personal Insurances

Are there any exclusions on my policy for COVID-19?

In general, our approved insurers do not have any specific exclusions for COVID-19.

Am I covered in the event of death from COVID-19?

As there is no specific exclusion for COVID-19, insurers will continue to assess claims according to the terms of the relevant policy.

This will vary from one policy to another and you’d need to check with your financial adviser, insurer or super fund to confirm if you’re covered. Most life insurance policies generally cover pandemics. Some policies provided through employer or industry/corporate super funds may have pandemic exclusions, usually when death, total and permanent disability or an illness related to a pandemic occurs shortly after cover commences (eg within 30 days). Beyond this, most policies will pay in the event that a death, disability or illness results from a pandemic (and where all other policy conditions are met).

Am I covered for TPD, trauma or income protection insurance?

If you are to contract COVID-19, we encourage you to get in touch with us to discuss a potential claim.  There are no specific exclusions for COVID-19 (in general) and you may meet the criteria for your TPD, Trauma or income protection policies.  Insurance companies will continue to assess claims in accordance with product terms and normal business processes.  Claims relation to COVID-19 is no different.

As a reminder, you will still need to meet all existing terms and conditions on your policy (such as waiting periods) to make a claim.

Superannuation Owned Income Protection – traps to be aware of:

In addition to meeting the insurance policy definition of incapacity, you must also meet the temporary incapacity condition of release under superannuation law before the trustee can pay the income protection benefit to the client.

This means that you must cease employment due to illness or injury to meet eligibility requirements. So if you are made redundant or unemployed, prior to falling ill, you may not be able to claim on your super owned income protection.

We recommend you get advice to see if there is a more suitable policy for you.

Can I make a claim for Income Protection relating to COVID-19 for having to be away from work because of self-isolation, even though I haven’t been diagnosed with this illness?

No – to make a claim for income protection you need to show that you’re unable to work (in accordance with the policy definition) because of sickness or injury.

Will newly insured customers be treated any differently?

At this stage, we understand there are no additional exclusions on new customers insured under the terms of insurance policies due to COVID-19.  However, if underwriting is a requirement, some insurers may postpone consideration of applications from any permanent resident returning to Australia for 30 days from their return date or until they have obtained prior clearance from a medical practitioner. This is subject to change at any time depending on the circumstances in the country(ies) where the applicant has travelled.

In addition, it is likely that new customers will not receive cover if you have been in contact with:

  • someone diagnosed with COVID-19
  • in contact with someone in quarantine
  • in contact with someone who has been in self-isolation

LINKS to some Insurance companies responses

AIA Insurance https://www.aia.com.au/en/individual/help-support/covid-19.html

AMP Insurance https://www.amp.com.au/support/COVID-19#FAQ-insurance

BT Insurance https://www.bt.com.au/personal/help/life-insurance-coronavirus.html

OnePath Insurance http://www.onepath.com.au/coronavirus-and-onecare.aspx

MLC Insurance https://www.mlcinsurance.com.au/coronavirus

TAL Insurance https://www.tal.com.au/about-us/media-centre/inaccurate-media-reporting-covid-19

Zurich Insurance https://www.zurich.com.au/news/life-insurance-news/2020/coronavirus-and-zurich-what-you-need-to-know.html