Insurers delay life cover for those at risk of Covid-19

Four major insurers have added Covid-19 questions to their life insurance applications that could result in doctors, nurses and people with health conditions being denied cover.

Aviva, Legal & General, Royal London and Zurich are now asking potential customers questions such as whether they have tested positive, experienced symptoms or been in contact with someone diagnosed with the virus. This could stop front-line NHS workers battling the virus in Britain’s hospitals from obtaining a policy.

Those with pre-existing conditions and at greater risk from Covid are also excluded. Tim Holmes of Salisbury House Wealth, a financial adviser, said this was causing problems for people, with applications being put on hold.

“The number of clients wanting to take out life insurance has doubled since the outbreak and being told to wait is very stressful considering the circumstances,” he said. “People want reassurance that their loved ones will be financially protected should the worst happen.”

Kevin Carr, an insurance consultant, said conditions such as diabetes could lead to cover being postponed or declined. “It may end up costing significantly more. The over-70s may also find it harder to get cover,” he added.

People who apply for life insurance from L&G and have had a positive result from an antigen test will not be offered cover until 90 days following the end of their symptoms. Those who have experienced symptoms or had contact with the virus but not had a positive result will have to wait between 14 and 30 days and then reapply.

Royal London and Zurich said people who had had the virus or had displayed symptoms would have to wait at least a month after they had subsided before they could reapply.

Royal London said that it would offer cover sooner if the customer could provide a negative Covid-19 test and that most healthcare workers would still be eligible even if they had been in direct contact with someone experiencing symptoms. The firm will, however, restrict cover for customers with pre-existing health conditions that make them particularly vulnerable if they catch the virus. This could include people who have had an organ transplant or have severe asthma.

Aviva said applications by people who had been treated in hospital for Covid-19 or had had symptoms, a positive diagnosis or contact with someone with the virus in the past 30 days would be reviewed on an individual basis.

All the insurers said that they were working hard to offer cover and that only a small number of people would be affected.