FAQs answered: what you need to know about Covid-19 and your Liberty insurance cover

How the pandemic affects your long-term insurance

29 April 2020 - 10:39
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Liberty answers your FAQs about how Covid-19 affects your insurance cover.
Liberty answers your FAQs about how Covid-19 affects your insurance cover.
Image: Supplied/Liberty/Getty Images

The Covid-19 pandemic has caused a lot of panic and uncertainty, leaving many people with questions about their financial future. Those with long-term insurance cover want clarity on how the pandemic will affect their insurance cover, if at all.

Managing executive for customer and adviser experience at Liberty Johan Minnie says: “Now more than ever, consumers should contact their financial advisers to navigate the terminology and understanding of the kind of cover they have in place.” 

Minnie answers some questions regarding Liberty’s insurance cover.

If I die from Covid-19 virus, will death benefits still be payable?

If a client dies from Covid-19, death benefits will be payable. The normal terms and conditions of the policyholder's policy will still apply.

What happens if I contract the Covid-19 virus and am unable to work?

This is where income protection becomes very important. Income protection has become a vital benefit for policyholders who have the ability to earn an income, as this is their greatest asset.

Policyholders need to know that if they are unable to work due to medically validated reasons, such as the Covid-19 virus, for a period (which exceeds the waiting period specified in the policy), the income protection benefits will be paid. A normal claims process will be followed and the claim will be assessed according to the terms and conditions of the policy.

Medical conditions that are claimed against the policy will be considered in line with policy definitions and normal claims practices.

Can I make a permanent disability claim if I contract the Covid-19 virus?

To date, the Covid-19 virus, as far as we can confirm, does not seem to have any complications that could cause long-term disability. Cases have shown no clear permanent lung damage after the infection has cleared.

All permanent disability claims will be assessed based on the qualifying criteria covered under the policy and the permanent effect the virus has on your health and your ability to do your job.

Does Liberty classify the Covid-19 virus as a critical illness?

The Covid-19 virus currently doesn’t fall into any of our benefit categories for critical illness. However, the virus may lead to certain secondary conditions that may trigger a payout under the definitions within the current benefit categories.

It's important to note that at this early stage, due to the speed of new information arriving, each claim will be assessed on its merits and a decision will be made based on the perceived effect on the health of the individual.

For more details about benefits, definitions, guarantees, fees, tax, limitations, charges, premiums/contributions or other conditions and associated risks, speak to a Liberty financial adviser or your broker.

This article was paid for by Liberty.