Covid-19 and Personal Insurance

We have all taken physical safety measures to protect ourselves and our loved ones through this pandemic. Just as wearing a mask, social distancing and increasing sanitation help protect your family from Covid, life insurance can help protect them if you get ill or injured.

Covid-19 has a lot of Aussies thinking about the impacts of major injuries or illnesses and how their family would cope if the dominant, or only income earner was affected. So, let’s have a look at all the various types of personal insurance in relation to Covid-19.


Can you apply for personal insurance if you are diagnosed with Covid-19?

Short answer? No.

You need to provide confirmation from your doctor that you are Covid-free before you can submit an application for new or increased cover. If you’ve been in contact with someone who has Covid-19, the same applies.

If you have exisiting cover, make sure you look into your insurance and welfare option just incase there is a flare up of Covid and you’re affected.


Does workers comp cover Covid-19?

Workers compensation only covers workers if they become injured during work, or become sick from their employment. If you contracted Covid-19 directly through the course of employment with your job playing a key role in how you contracted the virus, workers comp would cover you. If you contracted it while on your way to or from work, it’s the same as if you got into a car accident driving to or from work, you’re not covered by workers comp.

Personal insurance can be a good way to get extra coverage for anything that might happen outside of work and ensure your income is protected. Any serious illness or injury can have a huge increase on financial pressure for families. Balancing doctors and hospital visits with whatever extra things you need to do for the course of the injury or illness is enough, without being concerned about putting food on the table too.


What personal insurance can cover me for the virus?

Life Insurance.

When looking at the impacts of this global pandemic, it’s nice to see that many personal insurance policies don’t have pandemic exclusions and as such, most will pay out Covid-19 related claims.

In the event of your death, life cover will pay out specific funds to nominated beneficiaries on your policy. If you listen to government advice and restrictions regarding the pandemic but unfortunately happen to get infected and pass away from Covid, your family will still receive benefits.

If you don’t have a policy yet and work in a high risk profession (healthcare workers for example) you may still be able to take out a policy and be covered for Covid-19. It’s important to do your research and seek advice for your personal situation before beginning the process though as you want to make sure it will be worth the time and effort of applications.


What insurance won’t cover me with Covid-19?

Income Protection

Income Protection Insurance works well for people who are unemployed, self-employed, small business owners, or individuals whose business relies heavily on them being able to work. It covers/replaces the income you aren’t receiving if you’re sick or injured.

If you had to self-isolate, were temporarily put off work, or made redundant due to Covid-19, income protection insurance will not be able to cover you.

If you were to contract the virus and you have income protection insurance, you could possibly claim if the waiting period has passed. Your claim may not be successful though as many cases of Covid-19 clear up in around 2 weeks.


Total and Permanent Disability Cover (TPD)

TPD covers those who are totally and permanently disabled. Most claims are assessed on whether you’re able to ever work again in a job relating to your education, training and / or experience. Others look at basic daily living and working activities and if the claimer can complete any of those. TPD cover can contribute to rehabilitation, debt repayments and costs of living (now and in the future).

Whilst there aren’t generally covid-19 exclusions for this claim, you’ll still be assessed on the criteria for a total and permanent disability claim.


Trauma (or Critical) Cover

If you become critically ill or injured and need extensive medical care for recovery, trauma insurance can help by providing you with a lump sum payment. Trauma insurance policies cover major illnesses and events that have a defined impact upon your life, such as cancer or a stroke. They generally specify which illnesses they cover and could include coronavirus. While Covid-19 may not be a defined sickness under the policy, serious cases can lead to intensive care, which can fall under other defined sickness categories.


Working out what insurance would suit your needs and keep you protected in case of the worst can be confusing and difficult. So, get help from the professionals; we can explain all insurance types and help you decide which insurance will keep you covered and help you out, if the time ever comes.


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