Here at William Buck, we’ve received a number of queries from clients asking whether their insurance policies will pay out amidst the COVID-19 pandemic. Below we have answered two of our most common queries:
Can I claim in the event I pass away or become temporarily or permanently disabled from COVID-19?
- Most policies with retail providers will pay out in the event you pass away or become temporarily or totally permanently disabled (TPD) from complications of COVID-19.
- However, there are a number of industry funds that do not cover pandemic illnesses. Be sure to check your relevant Product Disclosure Statement or contact your provider or adviser if you need assistance.
- If you contract COVID-19 and are temporarily disabled (unable to work), dependent on your waiting period, you may be eligible to claim. Please check your policy details or contact your adviser if you need assistance.
Can I claim on income protection (IP) in the event I lose my job?
- Generally speaking, in a normal Life Insurance contract (i.e. Life, TPD, Trauma or IP), you will not be eligible to receive a benefit if you are made redundant.
- However, some retail insurance providers have an inbuilt benefit called “Involuntary Unemployment Benefit” or something similar. Depending on the provider, this benefit may allow you to have your premiums waived for a certain period (e.g. 3 – 6 months) while continuing to insure you for that period. Please note, if premium payments are not resumed after this period, your policy may lapse.