Life Insurance and COVID-19

Find a life insurance policy which covers COVID-19 by comparing with Savvy today.

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, updated on July 19th, 2023       

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Life Insurance

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The COVID-19 pandemic is something Australians have had to live with for over three years (at the time of writing). Because of this, many wonder whether their existing life insurance policies will cover them in the event they become critically ill or pass away as a result of the virus.

You’ll be able to compare policies from a panel of Australia’s top insurers through Savvy to help you determine which offer COVID-19 coverage. Start the process today by filling out a simple, no-obligation quote form to see what offers may be available for your profile.

Does life insurance cover COVID-19?

Yes – almost all life insurance companies will offer coverage for death or critical illness as a result of infectious disease or a condition stemming from a pandemic, which encompasses COVID-19. This means that you or your family will still very much be eligible to receive your payout from your life insurance policy should you pass away after contracting the virus (provided you followed Government travel advice at all times).

However, if you haven’t already purchased life insurance, there are some COVID-19-related situations where companies may not be able to offer you a policy immediately. If you’ve tested positive for the virus and are still unwell or yet to fully recover, you likely won’t have the option to buy a policy. This is also the case if you’re experiencing COVID-19 symptoms and are either intending to undergo testing or have already taken a RAT or PCR test and are awaiting its results.

All of these situations will be covered under existing life insurance policies and you’ll be free to buy your new policy once you’ve recovered from COVID-19 or the symptoms you were previously experiencing. You can get a quick quote right here through Savvy and compare offers from a range of insurers who can have your back if you fall ill or pass away after testing positive for COVID-19.

Does life insurance cover the COVID-19 vaccine?

Yes – all the top life insurance companies in Australia support the Federal Government’s vaccine rollout and encourage all eligible individuals who are able to do so to get vaccinated against COVID-19. As such, there won’t be any exclusions relating to you receiving a vaccine or any subsequent booster as directed by the Government, meaning you can rest assured you and your family can have the security you need in the event something does go wrong which qualifies for coverage.

It's worth noting the fact that any major ill effects, critical illnesses or deaths stemming from the COVID-19 vaccine are very rare. Some conditions which may stem from the vaccine and could cause fatalities include anaphylaxis and thrombosis with thrombocytopenia syndrome (TTS). This means the majority of Australians won’t be at significant risk of dying or contracting significant illnesses once they receive the vaccine.

If you’re immunocompromised or have any other conditions which may potentially affect the vaccine’s impact on your health, you should consult with a medical professional.

Are there any COVID-19 life insurance exclusions?

In most cases, no – insurers won’t typically apply specific exclusions to COVID-19 coverage, though some may have a limited number of exceptions. The reason why your life insurance may not pay out most relevant to this type of coverage is international travel against government advice. The Federal Government grades each country with a level of advice, ranging from “Exercise normal safety precautions” to “Do not travel”. If you decide to travel to a country with “Reconsider your need to travel” or “Do not travel” warnings (particularly if this relates to the COVID-19 situation in that country), your claim may be voided.

However, it’s important to note that this is the case for all policies, rather than COVID-19 coverage specifically. There are other situations where your claim may be denied, such as if you try to make a claim for trauma or income protection insurance within your waiting period. As mentioned, insurers in Australia won’t usually build COVID-19-related exclusions into your policy, with denials of coverage for your illness or death generally stemming from general exceptions.

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More common questions about life insurance COVID-19 coverage

Will I be covered for COVID-19 under my life insurance policy if I’m a frontline worker?

Insurers may offer cover for doctors, nurses and any other medical professionals working on the frontline to help deal with the COVID-19 pandemic. However, you may be required to pay more for your policy due to being deemed a high-risk individual with exposure to infectious disease in your work, while some insurers may not be willing to offer cover to you if you're in this position.

Will I have to pay more for life insurance if I choose not to be vaccinated?

No – in most life insurance underwriting processes when buying your policy, you won’t be asked about your vaccination status. As such, it won’t have a significant impact on the cost of your policy, if any at all. This is because vaccination against COVID-19 is voluntary as of June 2023, so you can elect whether to have your shot.

Does life insurance cover me if I’m unable to work to care for a loved one with COVID-19?

No – income protection insurance cover pertains to your health and ability to work if you suffer a serious (but temporary) injury or illness. If a loved one becomes critically ill after contracting COVID-19 and you’re required to stay home to care for them, your income protection cover won’t apply, as you’re physically fit and able to work. If your loved one has income protection insurance, they may be able to make a claim in this situation. However, this will depend on their insurer and the terms and conditions of their policy, such as the required waiting period.

Can I buy life insurance with COVID-19 coverage as a senior?

Those over 50 and seniors closer to 60 to 65 will be able to take out a life insurance policy provided they satisfy their insurer's terms and conditions. It’s important to keep in mind the limits which apply to policies in terms of entry and expiry ages, however. You’ll need to be no older than 60 to 75 to purchase a life cover policy, depending on the type of policy you buy. However, even if you fit within the maximum age limits, you'll still need to meet your insurer's criteria to secure coverage.

What happens if I experience financial hardship due to the COVID-19 pandemic?

All insurers will have hardship measures in place to help their customers should their circumstances change and they become unable to comfortably pay their premiums. If you find yourself in this position, it’s crucial to let your insurer know immediately so you can discuss your options with them. There are other measures you may be able to take in these situations, such as reducing the size of your benefit, but it’s important to assess the impact this may have on your family if something were to happen to you.

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Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

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