Yes, a life insurance company can deny an applicant coverage based on COVID-related responses

Insurance experts say that while some companies may refuse an applicant for new insurance coverage, others will not.

COLUMBUS, Ohio – Have you tested positive for COVID-19?

This is a question you may need to answer when applying for life insurance. This is something one of our viewers recently found out about and they say they were denied coverage after answering “yes”.

Can this happen? 10TV’s Lindsey Mills poses this question to insurance adjusters for verification.

“My wife and I are trying to find life insurance. One of the companies we check with asked the question: “Have you tested positive for Covid? We answered sincerely yes and were told that we could not obtain life insurance with this company.
He asks – can this happen?

  • Edward Lukco, head of the risk management and insurance program at Dominican University in Ohio.
  • Trey Taylor, CEO of Taylor Insurance Services, a small benefits consulting firm in Georgia.
  • And Scott Holeman, Director of Media Relations at Insurance Information Institute.

Yes, insurance companies can decline an applicant for new life insurance policy coverage based on COVID-related responses.

“Yes, it is possible,” Lukco said. “Certainly companies are going to have varying underwriting requirements.”

“A few insurance companies may not provide coverage for new policyholders who have already been infected with a virus,” Holeman said. “But there are plenty of companies that will, most companies will put this directly on their website if you’re shopping online for coverage.

So we can check — yes, it can happen. But according to Taylor, it’s something he has yet to see.

“At this point, all of the companies we represent, none of them have adopted standards on denial of coverage based on the presence of COVID in the past,” Taylor said.

If you’re in the life insurance market, be prepared for COVID-related questions.

“And you will also see that there will be addenda to the applications. If you answer yes. And the company is always willing to review it, they will give you an addendum to the original application asking about your experience with COVID” , Lukco explained.

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