The pandemic raised questions about insurance coverage, especially life insurance. During that time, many people became more focused on having enough coverage and financial protection for their families. However, confusion and misinformation online also led to concerns about how life insurance companies handled COVID-19.
If you had questions about how COVID-19 affected life insurance coverage, the following considerations help clarify what applied.
Does Life Insurance Cover Any Costs Related to COVID-19?
Health insurance typically covers medical treatment. Life insurance pays a death benefit to the named beneficiaries after a policyholder dies. Some life insurance policies include cash value features. These features may allow policyholders to access funds that could help with healthcare or other expenses related to illness, including COVID-19. Coverage and availability depend on the specific policy.
It's important to remember that loans or withdrawals from your policy's cash value may generate an income tax liability, and they will reduce the cash value and death benefit. Loans will also accrue interest.
Does Life Insurance Cover Pandemics?
Yes, life insurance does cover pandemics, according to the National Association of Insurance Commissioners (NAIC).1 The organization says "there is no pandemic exclusion for life insurance," so if you have an active policy that is in good standing, a life insurance company cannot deny your claim.
Does Getting COVID-19 Prevent People From Purchasing New Life Insurance?
Like other health conditions, getting COVID-19 could affect your ability to qualify for life insurance and the premiums you pay.
When reviewing an application, insurers considered several factors, including:
- Age
- Medical history
- Family health history
- Gender
- Smoking status
- Where you live
Even after the pandemic, COVID-19 remained one of the leading causes of death as recently as 2026.2 Some people also experienced long haul symptoms after infection.3
If you have ongoing health issues, whether related to COVID-19 or not, this could affect:
- Whether you qualify for coverage
- The coverage amount you are approved for
- The rate you are offered
In some cases, existing health conditions could make it harder to qualify for life insurance altogether.
Navigating COVID-19 challenges can be easier with life insurance options that offered flexibility and understanding. Request a Free Life Insurance Quote
Is It Harder to Get Life Insurance Coverage After the Pandemic?
The COVID-19 pandemic brought changes across many industries, including life insurance. During that time, many people questioned whether getting coverage had become more difficult.
In response to the pandemic, some insurance companies added COVID-19 related policy exclusions. These exclusions could limit or deny coverage if a policyholder passed away from COVID-19 related causes within a certain period after the policy was issued.
Before applying, reviewing policy terms and conditions helps clarify whether exclusions apply and how coverage is affected.
Will a Life Insurance Company Still Pay if Someone Dies of COVID-19 or From a Vaccine?
There was widespread misinformation online about life insurance payouts related to COVID-19, especially around vaccines. Some social media posts claimed life insurance companies would not pay death benefits if someone received a COVID-19 vaccine.
Those claims were false.
Several state agencies and industry groups publicly addressed these rumors during the panadmic. For example, the Wisconsin Department of Insurance and the Wisconsin Council of Life Insurers both issued statements confirming that COVID-19 vaccination was not a reason to deny a life insurance payout. The council’s president also stated that vaccination status does not affect death benefit eligibility.
Similar claims suggested insurers would deny benefits if someone died from COVID-19. According to the Insurance Information Institute, this was not true.4 Their research did not identify any life insurance policies that excluded death benefits due to infectious diseases, including COVID-19.
When a Life Insurance Claim Could Be Denied
Life insurance claims are rarely denied, regardless of cause of death. In limited situations, a denial may occur, such as:
- Providing false or incomplete information on the application
- Failing to disclose a prior COVID-19 diagnosis or another medical condition
- Submitting falsified medical records
These issues must be discovered during the contestability period, which typically lasts two years from the policy start date. After that period ends, insurers generally cannot deny benefits even if inaccuracies are later uncovered.
While these scenarios are possible, they are uncommon. The threshold for denying a life insurance death benefit is high, and COVID-19 did not change that standard.
COVID-19 & Life Insurance: How to Get the Coverage You Need
Does life insurance cover COVID-19, and does life insurance cover pandemics? The answer to both questions is yes.
There were no exclusions in standard life insurance policies for pandemics or infectious diseases, including COVID-19. During the height of the pandemic, it was understandable that many people had concerns about coverage. Separating fact from fiction helped individuals move forward with confidence when applying for life insurance.
How the Pandemic Affected Life Insurance
The pandemic changed how many people thought about financial protection. It also influenced how insurers reviewed applications.
Key impacts included:
- Increased interest in purchasing life insurance
- Longer underwriting timelines for some applicants
- Additional health considerations during the approval process
Although underwriting may take more time in some cases, insurers can not deny valid claims based on COVID-19 alone.
Life Insurance Payouts and COVID-19
If a policyholder passed away due to COVID-19 and their policy was active and in good standing, beneficiaries still receives the death benefit. The cause of death did not change how benefits were paid under standard policy terms.
The Bottom Line
If you are considering a policy or have questions about an existing one, contact your insurer and use trusted sources such as your state’s department of insurance or the NAIC. While the pandemic affected the life insurance process in the past, coverage is still worth pursuing. Even if you need to provide extra information or answer more questions, helping secure a life insurance policy may be a great start for you and your family.
Select life insurance that supports your well-being and offers benefits during major life events. Request a Free Life Insurance Quote
Sources
- NAIC INSURANCE BRIEF COVID-19 AND INSURANCE. https://content.naic.org/sites/default/files/inline-files/Insurance%20Brief%20-%20Covid-19%20and%20Insurance.pdf.
- Leading Causes of Death - NCHS. https://www.cdc.gov/nchs/fastats/leading-causes-of-death.htm.
- Long COVID Signs and Symptoms. https://www.cdc.gov/long-covid/signs-symptoms/index.html.
- Coronavirus news and updates. https://www.iii.org/article/coronavirus-issues-and-impacts.
