Shopping For Different Kinds of Insurance Plans During COVID-19? Here’s What to Expect When Searching

Chang Fu
May 19, 2020

The COVID-19 outbreak has brought unprecedented circumstances and has changed what you once knew as your “normal” day-to-day life. Stores have closed, workers have shifted to work remotely, and social distancing recommendations are in place for all in efforts to prevent the spread of the virus and protect lives.

Despite these several changes, one thing that may not have changed, or possibly even increased during this time, is your insurance needs. There are several types of insurances that you will want to take into account, and based on your specific circumstances, the types and amount of coverage you will want to consider can vary drastically from person to person; perhaps you are even looking for installment loan options to help pay for insurance. Whatever situation is relevant to you,  it’s important to review your own circumstances and financial considerations as you read below to find out what to expect when shopping for different types of insurance during the COVID-19 outbreak and how to make the best decisions moving forward: 

Life Insurance

Understandably, these uncertain times can act as a reason to review current life insurance needs, and shopping for a policy amidst a global pandemic can alter this process for individuals. Those with a current policy should not see a change in their coverage as a result of the coronavirus. Therefore any death, including one as a result of the virus would be covered and the payout would be made to the beneficiary.

But what if you are seeking a policy during this time, or looking to make adjustments or add additional coverage? You should have peace of mind in knowing that despite the coronavirus outbreak, you are still able to secure a life insurance plan for the needs of you and your loved ones. However, there are certain circumstances to consider while shopping for a policy during this time.

For starters, upon your application, be aware that life insurance companies will ask about past or future travel plans. You may see postponements in your application process if you have had recent or near-future international travel. Similarly, you may experience the same postponements with your medical history if you have already contracted COVID-19. If you have a complicated medical history or are older and more susceptible to contracting the virus, insurance companies may postpone your application during this time.

Since each company can handle applications during this time differently, it can be a good idea to utilize a life insurance broker and speak to an expert for clarity on understanding the medical exam, how your medical history can impact your rates, and the time it takes for applications to go through. Additionally, individuals seeking coverage right now need to be aware of the fact that a policy is not active until signed. Therefore, if you contract the virus and pass away before your application is approved, your beneficiary will not receive the payout from the plan as it has not been finalized.  

Renter’s Insurance

If you are currently renting, looking into renter’s insurance is a good idea as a way to help protect many aspects of where you reside and support your financial health— such as insuring your valuables, covering accidents you were to cause, and circumstances in which your apartment becomes inhabitable.

As renter’s insurance is one of the most affordable and cheapest insurances that consumers can purchase, it may be an area that you are looking to secure with all your extra time at home. When shopping for coverage, understand that several factors will influence the cost of your insurances, such as your credit score, the state you live in, and the number of valuables you are looking to insure.

As the coronavirus has left millions jobless, it is also important to note that many insurers are working directly with their consumers who are struggling to make payments during this time. This has included halting cancellations due to missed payments or waiving bank late fee penalties.

Another important consideration to those looking to lock down renter’s insurance during this time is that this type of insurance is generally technologically friendly by nature. So, for example, if you are looking to report a claim on a lost or damaged valuable, many insurers will find video or photo evidence adequate. This type of approved communication with your insurer is especially helpful during this period of social distancing.

Auto Insurance

Despite the expected decline in travel and commuting in regards to quarantine, car insurance is a requirement in most states, so you might still find yourself seeking coverage even during these times or wondering if you should make adjustments to your current plan.

Drivers with an active policy may consider if they should reduce their coverage to lower costs or look into receiving refunds from their company for monthly premiums they are struggling to pay. Right now, insurers are offering relief to their customers as a result of the virus in order to encourage them to keep their policies and coverage, so having an honest conversation with your insurer during this time can go a long way. 

For those looking to lock down car insurance right now, there are several ways to get quotes directly online and determine your rates. Something key to remember is that there are both mandatory and optional coverages to purchase when finding car insurance. Optional coverage includes items like collision, comprehensive, or glass coverage. Therefore, if your daily commute has been impacted and you are not using your vehicle as much, you may want to speak to an expert in deciding if optional coverage is something that you might want to postpone buying until the future.

Whether you are just starting to research your insurance needs or are having to adjust them based on the current times, use this information in regards to the coronavirus outbreak and how you can best navigate securing your financial health in the long run.

Chang Fu

Chang is an avid writer, among other things, at Possible. He grew up loving reading and writing, creating his own poems and even a book he's now hidden in an old closet, unpublished. His financial experience at a large bank along with his passion for technology to help underserved communities inspires him to write for Possible.

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