Canadians are concerned about their health and safety as they prepare for the future.

Our team here at TIP Services is still receiving questions about the impact of COVID-19 regulations on the life insurance industry. We answer all your questions in this article.

Coronavirus & Life Insurance

• While the application requirements are largely unchanged, the execution has been modified to accommodate COVID-19 restrictions.
• More applicants have had their applications delayed or temporarily denied due to a COVID-19 diagnosis.
• Certain products let you get completely new underwritten policies even in the event of a pandemic.
• Even though the number of cases is increasing, the price of life insurance remains relatively stable.

Life insurance covers deaths related to COVID-19

Both current policyholders who have COVID-19 coverage and those looking to get it now are concerned about receiving the death benefit.

Policyholders can rest assured knowing that you are covered even if you die from complications related to COVID-19. People who apply now will be fully covered in the event of a death due to COVID-19. Once your application has been approved and makes your first payment, there is no waiting period.

The exceptions that exist are the same exception as pre-covid:

• Suicide in the first 2 years
• Additional clauses in your policy that exclude specific causes of death, such as a skydiving accident (uncommon)

These exclusions are applicable to those who enter the pandemic with an existing insurance plan or new policyholders.

Processing Life Insurance Application Remains Largely Unchanged

The actual steps remain relatively the same. You will go through the same medical checks and nurse visits as before. You can complete your health questionnaire online or by phone.

Extra precautions are taken for any industry that can’t be done over the phone or online. Additional PPE is required for nurse visits. It’s also recommended that you wear a mask during home visits. It is likely that you will also need to wear a mask if your nurse visit takes place in a laboratory.

A short COVID questionnaire is required at the end of the application process. This questionnaire asks you questions similar to those that may be asked before any medical appointments. This could include:

• Have you traveled within the last 14 days?
• Are you in touch with confirmed cases of COVID-19 or have you met someone with this case?
• Are you experiencing any symptoms of Coronavirus (e.g., sore throat, cough, loss of taste or smell, fever)?

Remember to answer every question throughout the application process. This includes general health questions and coronavirus-specific questions. Your life insurance provider may deny any future claims if you are found to have been intentionally false in your application.

If you have COVID-19, you may not be eligible to apply for life insurance

Although you can still apply right away, if you are currently suffering from COVID-19, the insurance company may delay your application until you make a complete recovery.

These delays have become more frequent as the pandemic continues.

These delays are caused by COVID-19 at different stages of the application process:

• Your application is still being processed. However, your life insurance provider must know if you have been diagnosed.
• If you indicate that you have COVID-19 at the beginning of your application, providers may ask you to wait until you are healthy to submit your application.
• There have been instances where applicants were denied completely because they contracted the coronavirus while submitting their applications.

Why? It’s estimated that around 20% of Canadians who contract COVID-19 are ‘long haulers’ with symptoms well beyond the two-week mark. These unknowns are not something that many life insurance companies are prepared to accept.

It is important to apply for your policy sooner than you think. You can eliminate all the delays and worries about not being covered once you have a policy in place.

It is unlikely that your travel history will affect your life insurance application

The only way past travel would impact your life insurance application is if you ended up catching coronavirus on your travels. You may be denied if you travel after becoming sick.

But, it is possible that any travel planned for the upcoming months could have an impact. The details of any trip planned for the next 12 months will be important to your potential insurer. It is a good idea to keep track of your planned travel locations, such as cities, regions, timing, and other details before you start the application process. This could cause delays to your application as non-essential travel is still discouraged.

While it won’t affect your premiums, it could impact the length of your application, especially if you don’t contract COVID-19 during your travels.

As of now, life insurance prices are not increasing as a result of COVID-19

The concern about life insurance price increasing is parallel to the increase of life insurance applications. Prices are rising because of the law of supply and demand.

If you have an existing policy then-No. Even during the coronavirus pandemic, the rate you secured will not change. Signing early is important as you get locked with a lower rate.

Prices for new plans have remained stable despite COVID-19’s additional risks. Prices for Term Life Insurance across the board haven’t seen this increase.

This is not a blanket statement. Some companies have hiked prices for certain permanent life insurance policies up to 27% for new applicants.

You Can Shop for Life Insurance Now

Yes. It’s actually easier to shop online now than at the beginning of the pandemic.

Everyone was looking for ways to migrate their practices online and abide by the safety protocols when meeting patients, clients, and customers. Although the application process is not yet fully online, there is more COVID-19-related information that will help make this process seamless.

You can make the application process easier by looking for policies with instant approvals. You can find companies that will provide you with a fully underwritten policy, based on the questions you answer. No nurse visits will be required.

Last Thoughts on Life Insurance and COVID-19

The industry will change as COVID-19 evolves. Different companies may have different policies for the same type of policy. Each policy should be tailored to your needs and budget. Coverage should be available to you at home so that you can get protection without breaking the bank.

Smoking, chewing, or vaping tobacco can increase the cost of life insurance. Smokers can sometimes pay twice or more for life insurance than those who are not smokers.

Although life insurance can be more expensive for smokers, you still have the option to get life insurance. You may also be eligible for life insurance at a lower rate depending on your personal circumstances.

How smoking can affect your life insurance rates

The insurance company will conduct a complete medical exam when you apply for life insurance coverage. This is done to ensure that you get the best type of life insurance at a fair rate. Underwriting is the process by which your insurance company learns if you smoke or not.

You are more likely to get other health conditions from smoking, which can make it harder for you to live a healthy life. This makes you a greater risk for the life insurance company to cover and causes you to pay more for the same amount of coverage as non-smokers.

If you smoke, you will be considered a smoker for the purposes of your life insurance.

This means that even if you don’t use chewing tobacco, your life insurance rates will still be calculated as a smoker. It is important that you tell your life insurance company all about your tobacco use. By lying about it, the insurance company may withhold your death benefits from your beneficiaries.

Tobacco and smoking can increase your risk of developing many conditions that could lead to your health deteriorating. This can make it more difficult to get insurance. Smokers can be charged up to $2,000 for life insurance. Two or three times what a comparable policy costs for a non-smoker.

Other Factors that Change the Cost Of Smokers’ Life Insurance

Smoking can have a significant impact on your health, which is meaningful to life insurance companies. Your life insurance company will likely consider other factors when deciding how much life insurance you will pay for if you are a smoker.

These factors include:

Overall Health

Although you can smoke and be healthy, smoking can increase your risk of developing other health conditions that could reduce your life expectancy.

These are the conditions that can come from smoking:

• Increased chance of Cancer

• Increased risk of Heart disease

• Increased chance of having a Stroke

• Lung diseases

• Diabetes

• Chronic obstructive lung disease (COPD).

• Emphysema

• Tuberculosis

• Certain eye diseases

• Immune problems

These additional health problems are more common for those who are older and have smoked longer.

The life insurance company will review your medical records to determine if you smoke. They will also scrutinize your pre-qualifying medical screening.

Your premiums could be lower if you’re found to be in good health despite being a smoker. Your premiums may not be as high as those of someone with a similar medical history to you, but who is not a smoker.

You can also choose other lifestyle choices

Although smoking can have a significant impact on your overall health and lifestyle, it can also affect the amount of life insurance you purchase.

If you are considered overweight or obese and aren’t taking steps to get your health in check, it can cause your life insurance premiums to be higher. Your life insurance company may think you don’t care about your health and aren’t exercising enough.

What does quitting smoking have to do with the price of my life insurance?

You can reduce your premiums if you’re a smoker. There are some things that you should know before you quit smoking.

The best way to lower your life insurance premiums is to quit smoking.

You must quit smoking to be eligible for non-smoker premiums for life insurance. For a minimum of one year, before you apply for life insurance, You must have stopped smoking to get better rates like Preferred or Plus rates.

It is always a good idea not to smoke, but it’s best to stop smoking if you are unable to qualify for lower rates.

Waiting to purchase a policy until you get a lower rate puts your family at risk. Depending on your age, these few years could lead to an increase in your premiums. This could offset any reduction that you get from quitting smoking.

It is best to apply for life insurance right away, even if smoking has not stopped. After quitting smoking for at least one year, you may request a rate reconsideration in order to determine if you are eligible for lower premiums.

Are Life Insurance Policies for Smokers Worth It?

Life insurance for smokers can be more expensive than for non-smokers. Some people believe that buying life insurance is not worth it.

It’s always a good idea for your family to have life insurance. Smokers are more likely than non-smokers to develop a disease that can lead to premature death. This makes it even more important to have life insurance.

What can I do to reduce my life insurance costs as a smoker?

Many people wonder how to get the best price on life insurance.

Here are some important things you can do to find the best life insurance policy for smokers:

Stop Smoking

This is the best thing that you can do to reduce your life insurance premiums and improve your overall health.

You can be eligible for premiums that are similar to someone who has not smoked for at least one year if you have been a nonsmoker for at least one year. You may also be eligible for Preferred or Preferred Plus rates if you continue to be smoke-free for at least five years.

Smoking can cause your life insurance premiums up to three times higher than if it were stopped.

Maximum Coverage

You will pay more for life insurance if you smoke. This is why it’s important to carefully choose the coverage that you buy.

There are many factors that will determine the amount of coverage you buy.

• Financial obligations such as child support

• Your salary

• Your children’s ages

• No matter if you have a mortgage or any other debts that need to be paid

You can save money on your premiums by purchasing a smaller amount of life insurance. However, it will still provide financial security for your loved ones in the event you die.

Choosing to smoke after purchasing life insurance 

When you purchase life insurance the company factors in your health at the time of purchase. This means if you own life insurance and pick up smoking after owning life insurance. Your premiums will not be affected. It’s only if you apply for new coverage will your rates change to smoker rates.

Conclusion

Finding low-cost life insurance for smokers can be difficult. It’s possible. It’s possible to make a difference by taking the time to determine the type of insurance that you want, the amount of coverage you need, and matching with the right company.