NHS heroes face massive hike in life insurance costs
FRONTLINE NHS workers and those with underlying health conditions could find it harder to get affordable life insurance due to the Covid-19 pandemic, experts say.
Tim Holmes, managing director of financial adviser Salisbury House Wealth, said that insurers are increasingly incorporating Covid-19 related questions into their application process: “They are asking if applicants have experienced symptoms, tested positive for the virus or been in contact with an affected individual.”
Those at risk could see their applications put on hold.
“Frontline workers, such as NHS staff, may find it harder to get life insurance cover,” Holmes said.
People with underlying health issues that are seen as Covid-19 risks, such as diabetics, may have to shop around more to get a sensibly priced policy, he added.
There has already been a sharp drop in the number of people taking out life insurance in recent years, Salisbury figures based on Financial Conduct Authority data show.
Policy sales slumped to just over 350,000 in the 2019/20 tax year, down more than a quarter from around 480,000 just four years earlier.
Holmes said with life expectancy rising, younger people have seen cover as less essential but that could now change: “Coronavirus has brought the need to ensure dependants are financially secure after your death sharply back into focus.”
He added there are advantages to taking out life cover early in life: “You can lock into premiums at low rates in your 20s and 30s but will face much steeper premiums later.”