"I’m looking for insurance that would cover my income or health care costs if COVID or COVID related illness were to deem me unfit for work. Do these types of insurance plans exist?”
- Question from Daisy in Perth
Top answer provided by:
Michael Khouri
Hi Daisy,
Thank you for your question.
I have never come across an insurance plan specifically for COVID, but this is a question that I have had posed to me many times over the last couple of years. Many life insurance policies in the market provide cover in the event of not being 'fit to work' - whether COVID related or not.
In addressing your question, one of the main areas of focus would be to determine whether an insurer excludes pandemics (or COVID in particular) as a contributing cause (directly or indirectly) of a temporary or permanent disability.
Some insurers over the last few years have applied pandemic exclusions to their existing policies (that never previously had them) and some have reassured their clients that they will still pay in the event of a pandemic related illness.
This is where there is considerable value in seeking the advice of a financial planner and reading the applicable Product Disclosure Statement and Target Market Determination of a life insurance Product. When you actually start reading these disclosure documents, you will realise over time that not all life insurance policies are equal.
I've published many episodes on the topic of life insurance on my podcast show titled 'Sharing More Than The Sheets', which is available on all popular podcast platforms.
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
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