A lot has changed in the past couple of years as we have grown used to living in a pandemic.
And while the spread of Covid-19 around the world has sharpened our focus on our health and wellbeing, you may have started to wonder how the virus might affect your existing personal insurance cover.
The good news is that it most likely won’t, particularly if you’ve had your cover in place for some time.
Provided you have existing insurance cover, the emergence of a new threat won’t alter the protection you have. Insurance is designed to cover the risks that you can’t see coming, and until the start of 2020, Covid-19 was one of those things.
To expand on this a little, here’s how different types of cover can help you.
Income protection insurance
Generally, most Covid infections are short-lived and people are back to something like normal life – and their jobs – within a few weeks. If that is the case for you, this isn’t a situation in which you would claim on your insurance policies, anyway. You generally wouldn’t be able to claim on an income policy if you were off work due to the need to self-isolate. On the other hand, if you were to suffer long Covid which kept you off work for some time, you may be able to make a claim depending on your policy wording.
You could also claim under a Total Permanent Disablement (TPD) insurance policy if you were permanently disabled by your infection and met the requirements of your cover.
Trauma insurance
Covid is generally unlikely to trigger a trauma claim, either, but a complication could lead to an event that may be covered by a trauma policy. Make sure you look at the criteria (including the list of covered conditions) and understand how that might apply. And of course, if you have any questions, please don’t hesitate to contact us.
Life insurance
When it comes to life cover, Covid-19 is treated no different to any other cause of death. So, if someone suffering from Covid-19 passes away, they can expect their life insurance policy to pay out in the normal way, provided the claim meets the terms and conditions of the policy. It’s not a happy thing to think about, but knowing you’re covered can give you and your family some invaluable peace of mind.
Health insurance
Covid hasn’t interrupted the world of health insurance much at all in New Zealand, because it’s something that the public health system is equipped to deal with. However, having health cover can help you in other ways. Covid-related delays are putting extreme pressure on DHBs, which means it can take a long time to get an elective (non-urgent) surgery done in the public healthcare system. By giving you faster access to private treatment, health insurance can help you get back on your feet faster.
Travel insurance
The situation is changing quickly for travel insurance and some insurers only allow cover for travel to countries that the Government has deemed “safe” – visit safetravel.govt.nz to learn more. If you’re planning a trip overseas, it’s worth checking what insurance might be available before you book.
Future changes
While the situation at present is that Covid is unlikely to disrupt your cover, there could be exclusions introduced in the future. It’s not possible to predict at this stage – if there’s anything the past couple of years have taught us, it’s that making forecasts is fraught. Like to know more? We’re always here for your questions, big and small.
Like to talk it through?
If you have any queries about how the virus might affect your policies, please get in touch with us. We would be happy to discuss your situation and how your insurance cover might respond to Covid, or any other unexpected events that could lie in future. Part of our job is understanding how insurance is changing to keep up with the world, and Covid is just one part of that.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.