Estate Planning

Life Insurance and the Impact of the Pandemic

by Alli Thomas

May 21, 2020

The pandemic has disrupted almost every area of life and life insurance is no different. If you’re wondering about the impact of the coronavirus on your policy, you should contact your carrier, but here are answers to some commonly-asked questions to help you get started:


Will life insurance coverage extend to COVID-19-related deaths?

In most cases, life insurance policies should cover deaths due to COVID-19, but there are several potential exceptions. The following circumstances may present problems for beneficiary payouts:

  • The application was inaccurate or incomplete
  • Premium payments have lapsed
  • The policy is for accidental death and dismemberment coverage and doesn’t cover death due to illness or disease.


I was just diagnosed with coronavirus and don’t have life insurance coverage. Is it too late for me to buy it?

Most carriers have requested that people delay their application for life insurance if they are currently diagnosed with coronavirus.


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I have a life insurance policy but I can’t make premium payments due to financial hardship. What do I do?

If you’re struggling financially right now, or have lost your job due to the COVID-19 pandemic, contact your carrier right away. Depending on the carrier (and on the state in which you live), the typical 30-day grace period on premium payments may be extended.

I have a permanent life policy. Can I use its cash value as an emergency fund?

Yes. You can borrow most of the cash value of your permanent life policy without having to complete a loan application. Borrowing from the policy doesn’t affect your credit and most of the time, you can access the money within two to three business days.

If you need someone to guide you through your life insurance questions during this unprecedented time, one of our financial advisors can help. To set up a no-cost, no-obligation appointment, click here.



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Alli Thomas

Alli Thomas has worked in the financial services industry for nearly 20 years, with a focus on retirement-related investing. She began her career as a FINRA-licensed participant-services call-center associate at Vanguard, and then moved to Principal Financial Group, where she worked closely with employers, assisting with retirement plan set-up and design, selecting appropriate plan investment offerings, and maximizing employee participation through targeted education campaigns and enrollment meetings. Alli has also worked as a qualified 401(k) administrator and registered investment advisor for several small investment firms. She now writes about all things investment- and finance-related, leveraging her extensive experience and passion for retirement planning to help investors make well-informed financial decisions.

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