Obtaining insurance is crucial in providing protection for you and your assets. Since the onset of the Covid-19 pandemic, there has been a natural heightened awareness regarding the importance of life insurance and mortgage protection. The Covid-19 pandemic has made many things more difficult, including navigating through the insurance application process. It is important to understand these processes and how they have been altered, so let’s take a deep dive into the importance of life and mortgage insurance and how the application process has changed due to Covid-19.
Life insurance is a tax-free lump sum paid out to your family or representatives if you die, the cover and other specifics depend on which plan you have chosen. Applicants 50+ years of age and/or with underlying conditions such as diabetes or heart problems are considered high risk and are scrutinized more closely when applying for life insurance. Because of the serious illness and death rate associated with Covid-19, high-risk applicants are presently finding it even more difficult to be approved. In addition, insurers commonly raise premiums due to an applicant’s higher probability of illness or death so even if they are approved, it may not be affordable. Until we overcome the Covid-19 pandemic, some insurers have postponed the application approvals. So I strongly recommend that you start the process now so you can be very informed about your insurance needs and the required next steps that are best for you.
Mortgage protection life insurance provides cover so that your mortgage will be paid off if you die before you reach the end of the mortgage agreement term. It is not required but it is strongly recommended. Determining eligibility and premiums are very similar to general life insurance. Currently, some insurers that require medical reports to gain application approval have temporarily postponed the mortgage protection life insurance approval process. This is a result of the excessive workload for the doctors due to the Covid-19 pandemic. Luckily, there are insurers that do not require a medical report for the mortgage protection life insurance process so it will move similarly to how it did in the past.
Having knowledge of these processes is very important for all citizens in Ireland. As I stated before, obtaining insurance is crucial for anyone looking for protection over themselves, their families, and their assets. Covid-19 has changed things, so I hope that this information can make each process easier for anyone applying during this difficult time.