It’s been a little more than three months since we heard the first official reports about the novel coronavirus (also known as COVID-19), however since then, the disease has spread and is now affecting almost every country in the world, including Australians living both here and overseas.
Coronaviruses are a large family of viruses which may cause illness in animals or humans. In humans, several coronaviruses are known to cause respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
COVID-19 is the infectious disease caused by the most recently discovered coronavirus. This new virus and disease were unknown before the outbreak began in Wuhan, China, in December 2019.
We have been fielding enquiries from concerned clients about whether they are covered should they need to claim as a result of being diagnosed with COVID-19, so we have put together some answers to common questions to help.
Are existing Income Protection and Life Insurance policy holders covered in the event of their death from COVID-19?
Yes. Customers who have an in-force Income Protection or Life Insurance policy are covered in the event of death from COVID-19.
There is no general COVID-19 exclusion in individual life policies. All claims are assessed according to the terms and conditions of your specific policy.
Are existing Income Protection & Life Insurance policy holders covered for any TPD, Critical Illness or Income Protection insurance they may hold?
If you become unwell and this impacts your ability to work beyond the duration of your waiting period, then subject to the terms and conditions of your specific policy, you may be able to claim an Income Protection benefit. Please note that cover is not provided and the Waiting Period does not commence where you are self-isolating and unable to work, but are not suffering from a sickness.
Lump Sum benefits such as Critical Illness and TPD are intended to provide cover in the event of a serious health event that has material financial consequences for you. In the case of TPD, this typically would mean that the health event would need to result in permanent impairment that prevents return to work.
So far, the majority of those who suffer from COVID-19 are likely to recover relatively quickly and with no permanent consequences. Given this, neither Critical Illness or TPD specifically cover COVID-19, however in the event of serious and lasting secondary complications, Income Protection & Life Insurance customers may be provided with coverage in accordance with the specific policy terms.
Whilst markets globally are in turmoil it is important to ride these out and not crystallise losses by making changes to your investment mix as history shows things will in time, return to normal.
Like most businesses we are open and following the Australian Governments recommendations for minimising the spread of COVID-19 and practicing social distancing rules by working from home as much as possible.
As our Prime Minister has said, together we will get through this difficult period.
We wish you, your family and friends continued safety and good health.
