Purchasing Life Insurance during the COVID-19 pandemic should not be difficult.
Since the COVID-19 pandemic started, Canadians have been experiencing some difficulties and facing different obstacles with purchasing life insurance products. Does that mean people are unable to purchase life insurance products? No, Life Insurance companies are still operational and helping their existing clients as well as new customers. In this article, we are going to explore different frequently asked questions of our clients in an effort to provide you with insight if you are considering purchasing life insurance for yourself or your family members.
What are the steps involved in the purchase of a life insurance policy?
If you are new to life insurance products and have never purchased a policy, you might not know what type of obstacles everyone is talking about. To give you a better idea, in a traditional life insurance purchase process, a customer would contact a life insurance advisor to inquire about a life insurance product, face amount, and estimated yearly/monthly premium. After going through the different options and exploring what each Canadian Insurance company offers, the application would be submitted and, in many cases, (depending on age, health status, insurance amount) applicants would have to go through a medical test, where a nurse would visit the customer in their home or workplace and conduct the medical test (usually consists of paramedical questions and extracting blood and urine samples). Once the results are in, depending on the decision of the underwriter and the risks associated with the customer, the accurate premium would be set and the customer would be able to complete the purchase of the desired life insurance coverage.
Do I need to complete the medical examination to buy life insurance during COVID-19?
Usually, when applying for a life insurance policy, there is the underwriting requirement for three tests: paramedical, urine, blood. A paramedical test is an examination conducted by a registered nurse that would visit you at your convenience and agreed upon location (your home, workplace, or etc.). Depending on what information and tests are required by the insurance company, the nurse will gather various information but certain information is a must during a paramedical examination; such as weight, height, family history, diet behaviours as well as blood and urine tests. Many do not enjoy this process, but that has been the way to obtain a life insurance policy for the longest time.
Due to the COVID-19 pandemic, the majority of the big Canadian insurance providers have revised their medical requirements and have allowed the possibility of waiving the medical examination for certain amounts of coverage. Just like many other industries, the life insurance industry adjusted itself. Therefore, life insurance companies are changing the medical test process, to a process that does not involve any physical test. For example, the Bank of Montreal’s life assurance has waived the physical paramedical exam for applicants of up to 50 years old for insurance coverage of up to 1 million dollars as well as up to 300 thousand dollars in coverage for applicants between ages 51 to 60. BMO is not the only company that has made this type of change, Industrial Alliance is another giant in the life insurance field that has made these changes. This is a huge game-changer.
COVID-19 has changed our lives and many businesses, the Life insurance industry is no exception.
We are living in an era where social distancing is a must, and technology is quite advanced and at reach. Coronavirus has changed the landscape of our society, our lives, and our businesses. Since human interaction has changed and we all are practicing social distancing, the life insurance industry was not able to have paramedical exams as part of its procedure anymore. Therefore, all insurance companies are working on a non-face-to-face program leveraging technology to assist the customers with the process.
Non-face-to-face life insurance applications have been available recently; however limited, to a certain age group, covering up to specific coverage and the process was not the most user-friendly one. Even then in many cases, paramedical exams were still a requirement. Everything has changed since Coronavirus came along and created a major push for the industry to expedite the process of online life insurance for both agents and customers.
What does the life insurance purchasing process look like during the COVID-19 pandemic?
Most reliable life insurance companies introduced strong non-face-to-face applications and had their advisors trained on how to operate on their online platform.
All Canadian customers looking to obtain a life insurance policy can contact registered and qualified insurance advisors like Apluswealth advisors and get an online quote, find the right policy, apply for the policy and get the policy delivered to them without leaving their house or any in-person contact.
Thanks to the internet and social media apps, there are many ways that customers can conduct meetings with their life insurance advisors without seeing them in person. Life insurance advisors must answer clients’ concerns and questions, help them in choosing the right life insurance product, do the online application with a client, check the client’s identity, ask the medical questions, and deliver the policy.
Even though there are no medical tests, in some cases there is a medical phone interview, which takes about five minutes and is very straightforward.
How do Life insurance companies rely on medical questionnaires and phone interviews during COVID-19?
Life Insurance companies can not conduct any medical tests because of health restrictions and the risk of spreading the CoronaVirus, and that is why they are only limited to medical questionnaires and phone interviews for the time being. However, they are not only relying on the answers they receive from their clients. Life insurance companies are now focused on medical data more than ever. The data gathered by health Canada and medical professionals will now play an even bigger role in the life insurance industry.
If you are looking to buy a life insurance policy, you should expect some COVID-19 related questions, such as, have you been in contact with anyone with COVID-19 symptoms or anyone diagnosed with COVID-19?
Also, keep in mind for international travellers there will be a waiting period of two to four weeks to apply for life insurance.
What you should consider before buying a life insurance policy during COVID-19?
Every Canadian who is looking to purchase a life insurance policy must only seek advice from life insurance agents with a valid Financial Security Regulatory Authority license. You do not have to know the advisor personally; fortunately, video conference apps allow us to get to know an expert non-face-to-face and conduct business.
A key factor that all Canadians must keep in mind, is to choose a life insurance company with a good reputation and a strong financial foundation to buy their life insurance policy. Especially if you are going to hold your life insurance policy for a long time.
We learned!
In conclusion, since the COVID-19 pandemic purchasing life insurance has changed a lot, not the products, but the process. Buying a life insurance product is a much smoother process compared to what it was before the CoronaVirus. The non-face-to-face process allows Canadian consumers to obtain life insurance coverage in the comfort of their homes without having to go through a paramedical exam.
A Life insurance advisor is crucial not only to help with the non-face-to-face process of obtaining life insurance and easing the complexity of online application and process but also to help with medical questions and delivering the policy electronically. An advisor will work with you through the process and take care of all communications with the insurance company head office.
Remember, COVID-19 will pass, but your financial goals will not so work with a financial advisor to address your financial needs and change them when necessary.
AplusWealth Inc. is here to help you find the right life insurance product during the COVID-19 pandemic
An expert advisor is the best person to help you secure your family’s financial future and guide you to find the best type of life insurance. A financial advisor or insurance agent will assess your financial needs, look at the existing life insurance policies you may have, then they will find a way to cover all your life insurance needs within your budget.
We do all that fully online. Thanks to our expert advisers who are fully comfortable with the online life insurance & investment platform, you can take advantage of their expert opinion as to if nothing has changed. By taking your age, and health, liabilities, and goals into consideration. At Apluswealth, you can get a quote, compare quotes, and find the life insurance quote you feel comfortable with. Our life insurance advisors will provide you with quotations and the most suitable policy types.
Contact our expert advisers today and find out which is the best life insurance for you.
Email: Contact@apluswealth.com
Tel: +1-888-461-6120