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Am I covered for coronavirus?

Retail insurers who are members of the Financial Services Council (FSC) have confirmed the coronavirus pandemic is not excluded from policies if you follow the governments travel advice.

Michael Luck

BSc. Econ, BCom, MBus
Authorised Representatives of Millennium Three Pty Ltd
ABN 61 094 529 987
AFSL 244252

Retail insurers who are members of the Financial Services Council (FSC) have confirmed the coronavirus pandemic is not excluded from policies if you follow the governments travel advice (1). Basically, if you have a life insurance policy that was taken out before 11th March 2020 you are covered in the event you die from the virus. If you are applying for new insurance, then you will be asked further questions in the underwriting process to determine if you are at risk.

What if I have coronavirus before I apply for insurance?

It is highly likely the insurer will require you to recover entirely before approving your application. What does this mean for you? Well it all depends on what insurance you have and who you have it with. As mentioned above, all insurers who are members of the FSC have confirmed they will not exclude the coronavirus pandemic if you follow the government travel advice.

If you are unsure of whether your insurer is a member of the FSC or if you have any insurance you should speak with your financial adviser or get in contact with us at Luck Financial Group.

Redundancy

The type of policy providers above typically do not cover redundancy which so many are facing with the recent pandemic. While some employers provide this as part of the employee contract it is not something that can be found in a common retail insurance policy. With exception to the odd mortgage income protection contract which will actually pay the bank if you become redundant, so the loan repayments are still met.

Why should I worry about insurance when I’m more worried about my cash flow?

While many are facing the drastic situation where their household income may be diminishing to nothing soon; personal insurance may not be top of mind. It may appear as a luxury item. However, if you don’t have anything to protect you or your family and you do contract the coronavirus or suffer any other medical event, you and your families circumstances may dramatically worsen beyond not affording the groceries.

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