We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.
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.
Types of life insurance
Life cover can pay a nominated beneficiary a lump sum if you’re diagnosed with a terminal illness or pass away. This type of insurance can provide your immediate family or another loved one some financial assistance to cover funerals, medical costs and day-to-day expenses.
If you’re injured or too sick to work for an extended period, income protection insurance is designed to help you focus on your recovery. You can be covered for up to 70% of your usual wage for a chosen period, such as five years or up to age 65, depending on the level of coverage you buy.
This type of insurance is designed to offer cover to those who are permanently disabled by injury or illness and are no longer able to work. You can choose to take out cover for an inability to work in your current job or in any role suited to your qualifications.
Trauma insurance is a type of policy which provides you with a lump sum payment in the event of a critical illness or major accident. The conditions eligible for claims will be outlined in your insurer's PDS, but can include cancer, heart disease, severe head trauma and cardiovascular disorders.
Why compare life insurance through Savvy?
More common questions about life insurance COVID-19 coverage
Helpful life insurance guides
Life insurance by your condition & profile
Compare life insurance options aligned to your medical condition and profile and receive no-obligation quotes from some of Australia's leading insurers.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
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.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.