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What impact has Covid had on life insurance underwriting? Thumbnail

What impact has Covid had on life insurance underwriting?

In this episode, Josh and Jay discuss how has Covid-19 impacted underwriting requirements for life insurance, disability income insurance and Long Term Care insurance. The guys discuss the multiple changes to both the process of how an insurance applications are submitted and how they are processed, as well as addressing the increased demand for coverage brought about by the pandemic. As a episode bonus, Josh and Jay also list the 5 most common life insurance mistakes, and give tips on how to avoid them.  

Key Takeaways:  

- If you have had Covid-19, do you still qualify for life insurance, or disability income insurance, or long term care insurance? The short answer is yes, but the carrier will have some questions. What did you recovery look like – did you stay at home, what were your prescriptions, are there any lingering effects, etc.

- For those people that suffered from Covid but did not require a hospital stay, many carriers are offering coverage 30 days out from date of diagnosis or positive test.

- For those that required a hospital for their Covid treatment, as long as no respirator was involved, you can still get coverage. Some carriers are setting it as 30 days back at home, while others are at 60, 90, or even 180 days back at home.

- If you’ve simply been exposed to Covid, most carriers are offering coverage after a 30 day waiting period  

5 most common life insurance mistakes:  

Beneficiary issues: improper beneficiary, such as listing minors or children

Product does not meet the insured’s needs

Failure to review coverage every 2 to 3 years Inadequate coverage amount for insured’s situation

Ownership issues: Sometimes the life insurance needs to be owned outside their estate, for example, in an irrevocable life insurance trust  

Action Items: If you’re needing coverage, Josh and Jay thru First Protective have many life insurance, disability income and long term care options. Even if Covid is not an issue for you, maybe you are cigar smoker or have height & weight issues. Josh and Jay can work with the carriers that are most competitive for situation. You can reach out to Gulf Coast Financial Advisors to set up a no-cost, no-obligation discussion about your particular needs by call 251-327-2124 or emailing jnull@gulfcoastfa.com.  

Resources:  Gulf Coast Financial Advisors Prime Capital Investment Advisors Qualified Plan Advisors Financial Fitness for Life First Protective  Show Links:  https://gulfcoastfa.com/ https://pciawealth.com/ https://qualifiedplanadvisors.com/ https://fitrusts.com/ https://everydollarcounts.libsyn.com/ http://jaystubbs.com/ https://www.firstprotective.com/ https://www.deepfriedstudios.com/ https://www.slothracerband.com/

Advisory services offered through Prime Capital Investment Advisors, LLC (“PCIA”) a federally registered investment adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”). PCIA and Gulf Coast Financial Advisors are not affiliated. 

Gulf Coast Financial Advisors (GCFA), Prime Capital Investment Advisors (PCIA), Prime Capital Wealth Management (PCWM) and Qualified Plan Advisors (QPA) do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. The information provided herein is not a complete analysis of every material fact regarding any strategy; it is intended only to provide insight into the opinions of the author. You should consult your own tax, legal and accounting advisors before engaging in any transaction.