Before protesting or COVID-19 testing – get life insurance first

BY ANDREW STEWART

Like the rest of the world, I heard the news of what had happened in Minnesota about George Floyd’s murder, watching the video on social media. It was one of the most horrifying accounts of police brutality that I have experienced in my lifetime. Just before that, I remember getting pulled over at a stop sign with an older friend sitting in the back, who need the leg room because they had broken leg. I was not speeding, and I am quite sure I came to a full stop. Apparently, the only reason we were stopped was because the police officer just wanted to make sure everything was okay. We kind of had a laugh about it because I was like, “WOW, he must of thought I was kidnapping you” There is no question that racism still exist and is in full swing in the US and Canada. What I want to warn and inform those who do not have life insurance about are the possible consequences of how participating in these two right and justified actions could impact your future ability to be approved for insurance.

Seven in ten (70%) Canadians have life insurance, while three in ten (29%) do not. Less than half of those with life insurance coverage say they review their coverage at least once a year (37%) According to a survey conducted by Ipsos-Reid, on behalf of RBC Insurance. While most surveys poll all Canadians as respondents for generalized findings a most surprising result was the extent to which Canadians are underinsured. Of those indicating they have a life insurance policy, 40% are only covered through a work or group benefits plan. So, let say you are planning to support Black Lives Matters in a march. You do not know who if you may have met someone who has COVID-19. Insurers now ask if you have encountered anyone who has tested positive for COVID-19. That could mean that your application could be suspended for 60 days before being approved for fluid underwritten policies. The good news is most carriers have increased their insurance limits for No fluid/Non-medical limits to $1,000,000 for ages 18-50 and up to $300,000 for ages 51-60.

If your plan is to apply for critical illness coverage No Fluid/Non-Medical underwriting for ages 18-40 are up to $250,000 and ages 41-50 are up to $99,000 with some carriers. As we start to gradually reopen the economy, the Ontario government is implementing the next phase of its COVID-19 testing strategy. I can foresee a lot more individuals being mandated into testing. Below is the disclosed plan from news.ontario.ca website.

Assessment Centre Testing: expanding who gets tested to now include asymptomatic individuals concerned about exposure and continued routine symptomatic testing at assessment centers.

Targeted Campaigns: detecting and containing cases by expanding asymptomatic surveillance for vulnerable populations, including in long-term care homes and other shared living spaces like shelters and group homes, as well as targeted testing of workplaces in priority sectors which work with priority populations and where it may be difficult to physically distance.

Outbreak Management: testing to ensure rapid and agile response capacity for outbreak management, including in specific neighborhood’s and regions or at hospitals, institutions, and workplaces.

What could be the possible consequence of being tested? If you’re tested and are positive for COVID-19, it becomes a known illness and must be declared on the application. The most likely outcome will be that the application is postponed until underwriting is complete. One way around not being covered is taking the offer of temporary life insurance coverage, which provides coverage in the event an applicant dies during the approval process.

If you have questions or concerns about applying for coverage, there are tons of articles online that explain most of the frequently asked questions or speak to an advisor prior to applying.