You can’t always believe what you read on social media, especially when it comes to medical information amid the coronavirus pandemic.
An Instagram post from May 2021 went viral claiming that a user’s family was denied a life insurance benefit because the deceased had received the “experimental” COVID-19 vaccine. But vaccines made by Pfizer, Moderna and Johnson & Johnson have all received emergency use authorizations. The post has been reported as a misrepresentation and it shows no supporting evidence.
Indeed, life insurers cannot deny a death benefit because the deceased is vaccinated against COVID-19, according to American Council of Life Insurers (ACLI). “The fact is, life insurers don’t consider whether or not an insured has had a COVID vaccine when deciding whether to pay a claim. Life insurance contracts are very clear about how policies work. and on the cause, if any, that could lead to the denial of a benefit. A COVID-19 vaccine is not one of them,” said Paul Graham, senior vice president of ACLI.
People who are hesitant to get vaccinated because they don’t want to lose their insurance benefits can rest assured that the COVID-19 vaccine will not affect death benefit payments.
This is a good time to take stock of your life insurance coverage to ensure that your loved ones will be taken care of in the event of your death. You can compare life insurance policies on Credible to ensure you get a fair quote for a comprehensive plan.
“The fact is, life insurers don’t consider whether or not an insured has had a COVID vaccine when deciding whether to pay a claim. Life insurance contracts are very clear about how policies work. and the cause, if any, that could lead to the denial of a benefit.A COVID-19 vaccine is not one of them.
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3 Legitimate Reasons Insurers Can Deny a Death Benefit Claim
Although life insurers cannot deny a death benefit because of your vaccination status, there are reasons why a death claim may be legitimately denied.
- The deceased died within 2 years of taking out the contract. In most states, the insurance company can investigate the policyholder’s medical records to see if there have been any misrepresentations on their policy.
- The deceased had an accidental death and dismemberment (ADD) insurance policy. This type of life insurance policy does not cover medical death or death by suicide.
- The deceased paid no premiums. The insurance company may not be required to pay the death benefit if the policyholder failed to pay their premiums and the policy was terminated.
It is important to understand the specifics of your life insurance policy so that your beneficiaries are not caught off guard in the event of your death. Check your policy contract for more details. If you are unhappy with your level of coverage, you can purchase a new life insurance policy from Credible.
If you die of complications from COVID-19, will your beneficiaries receive a death benefit?
Yes, insurance companies will pay for deaths due to coronavirus-related circumstances. However, the insurer may not pay the death benefit if the policy premiums were in default, as mentioned above.
Getting vaccinated against COVID-19 is an effective way to protect yourself from adverse health effects from COVID-19, including death.
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Will getting vaccinated against COVID-19 make you ineligible for life insurance?
We already know that being vaccinated against COVID-19 is not a reason for a life insurance company to deny a death benefit. Nor can insurers prevent you from taking out a policy because you received the COVID-19 vaccine.
In a statement issued March 15, 2021the Life Insurance Council of New York has confirmed that “vaccination against COVID-19 has absolutely no bearing on a life insurer’s decision to pay a claim or issue new coverage.”
Regardless of your vaccination status, you can buy life insurance from Credible’s online marketplace.
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