While most South Africans have access to the vaccine, there are still many more that await or need to be vaccinated. Will dying from the COVID-19 virus impact your life cover payout? Is it possible that a claim can be denied due to not taking the vaccine? Here is what you need to know.

An increase in death claims

Since the start of the pandemic, insurers have seen an increase in death claims with a record of 433, 216 death claims compared to 317,442 claims in 2019. With the uncertainty brought on by the pandemic, many South African's have been looking for ways to protect themselves and their loved ones from being financially exposed. This usually comes in the form of life insurance or funeral cover. However, there are certain causes of death that insurers will not process. Is COVID-19 one of these?

Will COVID-19 impact your life insurance policy?

It's still possible for you and your loved ones to receive the payout, but this will depend if your policy was kept active by having your premiums paid up to date. Taking the vaccine may not be compulsory but refusing to be vaccinated and deliberately exposing yourself to the virus by not following the COVID-19 guidelines could be grounds for insurers to not process a claim. You can still apply for life cover even after you have been diagnosed with COVID-19, but you will be asked questions regarding your medical history, including recent medical events, to assess if you are a risk or not.

Underwriting changes could affect your policy

Making life cover a fair process for everyone who is looking for a policy means that life insurers have to consistently evaluate policies. The underwriting process is a process that is used to make this possible by assessing you for any future risk to approve or deny a policy.

It is important, when taking any cover, that you answer all the questions truthfully. Should you require or want to take out a life insurance policy, specifically with COVID-19 in mind, keep the following three sub-groups in mind, and disclose if:

You have been tested and confirmed to be Infected by COVID-19

You have been exposed, directly or indirectly to people who have been tested and confirmed positive for COVID-19

If you have recently travelled abroad

What will happen to existing clients policy if they tested positive?

Should you be tested positive for the COVID-19 virus and you already have life cover with MiWayLife, you will be covered. “They don’t have to worry about anything. That’s assuming that they answered all their health questions truthfully during the underwriting process when they originally took out the policy,” says Castro Mtsutsa, Head of underwriting. 

If it is a case where you were not aware that you were at the time infected by the virus and were approved for a policy, you will still be covered. The only time where your application for a policy could be denied by an insurer is if you have tested positive or you are currently under investigation for COVID-19, which is what they call PUI - i.e. a person to be tested for COVID-19, or are guilty of non-disclosure of your status during the underwriting process.

While we aim to uphold our promise to financially protect you and your loved ones should a valid claim be placed during this period, we ask that everyone stay safe and follow the set guidelines to protect you and your loved ones from the Coronavirus.