Alex here. I thought I’d take over the blog post this week to highlight something that isn’t normally focused on: the value of protection. I’m sure it wouldn’t surprise you to find out that living through this historical time has inspired many families to question whether they are going to be okay. One of the more interesting parts of my career is having that kind of frank and honest conversation with clients. Covid-19 has scared a lot of people; thanks to my job I get the good fortune of being able to dispel at least some of that fear.
The two Covid related questions I have been answering most often are: “Does my policy cover the Corona virus?” and “Am I able to get protection even during the shut down?”
If you have a life insurance plan in place, you and your family are covered. Covid-19 is a black swan event. Many insurers have restrictions on acts of terror and acts of war but not for pandemics. There are probably boardroom discussions about adding pandemic exclusions on new contracts, but once a policy is in place the insurance company is required to honor it as it is written. They cannot make exceptions after the fact.
A crisis like this is a good time to make sure you have enough insurance coverage and to review what type of coverage you have. I recently had a conversation with a couple who thought they had $200,000 worth of life insurance though her company’s group benefits plan. The bad news was that was not true, the good news was that we caught it.
Group insurance plans have many moving parts. I review at least one client’s group benefit package weekly and it takes me a lot of concentration and caffeine to make sure I understand the full picture. The previous couple who thought they had $200,000 of life insurance really only had $60,000 worth of life insurance and $60,000 worth of Accidental Death and Dismemberment insurance (AD&D). They thought that the spousal coverage was the equal to the employee’s life insurance but it was a much smaller amount. AD&D insurance can be important depending on the industry, but it won’t help much if you were to fall ill. Not all coverage is created equal.
For many, this pandemic has been an eye-opening experience. Many people have reached out to put an insurance plan in place and like everyone else the insurance companies are breaking their backs to keep business rolling. Many rules have been loosened and systems have been put in place quickly to ensure that when possible an insurance plan can be implemented without any human contact.
If you have any questions about your current insurance plan, or putting a new plan in place feel free to email me at email@example.com or call me during normal business hours at 416-368-1819.