Are you about to lose your insurance due to coronavirus? Here’s how to find out.
Updated: Apr 1, 2020
A few concerns have been raised in the press recently about life insurance cover in the face of the coronavirus pandemic.
Life Insurance in Some Super Accounts to be Cut Off
An article by the ABC alerted readers to the fact that some insurance policies contained in superannuation funds would be automatically canceled on 1 April this year.
Approximately 12 million Australians hold insurance policies through their superannuation.
The Federal Government passed legislation last year cutting off life insurance for inactive super accounts with balances that have never been greater than $6,000, and for new account holders younger than 25. The legislation arose from a Productivity Commission report last year that found many people's savings had been eroded due to duplicate or redundant policies.
While the legislation is designed to stop people’s superannuation policies from being eroded, there are concerns some people, particularly women, maybe left uninsured during the coronavirus pandemic.
Insurers Moving to Exclude COVID-19 From Life Cover
A different ABC article on 27 March, reported that insurer TAL has moved to cut off payouts to customers who die from COVID-19, including doctors fighting the virus. The article claimed that an internal TAL document obtained by the ABC showed that TAL had started adding an exclusion clause for coronavirus in new insurance policies.
On the same day, TAL released a statement confirming that:
No general exclusions exist in their policies for COVID-19 for any existing or new customers,
All existing customers, including doctors, nurses and medical professionals on the frontline, are fully covered for COVID-19; and
Contrary to recent reporting, no customers with the potential to be impacted by COVID-19 are at risk of having any payout associated with their policy reduced or cut off.
There was the possibility that new customers meeting certain criteria, such as showing symptoms of COVID-19 or recent travel abroad, maybe offered modified terms.
Concerns About Insurance Cover and Coronavirus? Speak to Us!
These are worrying and confusing times. If you have any concerns about insurance cover for you or your family, please contact us for a free, no-obligation chat with one of our qualified insurance advisors. The Mavuno team is here to help you get through to the other side!
Disclaimer: Any information contained in this content is of a general nature only and not intended to be advice of any nature. Further details here.