Does The Covid-19 Vaccine Void Life Insurance?
Posted 13th May 2021 by James Holden
On 31 December 2019, the World Health Organization (WHO) was informed of a cluster of cases of pneumonia of unknown cause detected in Wuhan City, Hubei Province, China. As we all know, this quickly escalated into the Covid-19 global pandemic that what we’re now experiencing.
Whenever we turn on the TV, radio, check Apple News or scroll through social media, it seems we’re overwhelmed with new information about Covid-19 and sometimes it’s hard to know what’s real and what isn’t.
Life Insurance is a financial product that has gained a lot of interest over the past year, as people feel much more aware of their mortality and realise just how fragile their incomes are. However it’s also been the subject of misinformation, which insurance companies are eager to correct.
By now, most people know that Life Insurance covers deaths by Covid-19. In fact, statistics from the Association of British Insurers (ABI) have revealed that British insurers paid out over £200m in 2020 for Coronavirus deaths. That’s the equivalent of over £550,000 paid every day for Covid-19 claims.¹
However, the most common and concerning ‘fake news’ currently surrounding life insurance is that policies are void if policy holders die or become seriously ill from taking a Covid-19 vaccine. The reasoning behind this belief is often that the vaccine is an ‘experimental treatment’ and therefore is excluded from life insurance pay-outs.
Industry bodies and insurance companies around the world are quick to respond to these rumours and clarify the reality.
Sally Loane, chief executive of Australia’s financial services trade body, the FSC, said: “The Covid-19 vaccine is not experimental treatment. Receiving approved treatment from a qualified medical professional at an approved medical facility is not a self-inflicted injury.”²
Does my choice to not get vaccinated affect my life insurance?
Your life insurance policy will be unaffected by your Covid-19 vaccination status.
On their website, insurance provider Aviva said: “Vaccination in the UK is not compulsory and an individual’s vaccination status will have no impact on their policy or any future claims.”³
Insurance giant Zurich has also made their position clear by saying: “Subject to all the normal criteria for a claim being met, we would not decline a claim where it came to light that the individual has (had) COVID-19 and had previously refused a COVID-19 vaccine”.⁴
Does Allianz pay Life Insurance for vaccine related deaths?
An example of misinformation circulating on social media is, what claims to be, a life insurance policy document from Allianz. It draws attention to a list of scenarios in which a life insurance benefit would not be payable including “We will not pay where the condition is intentionally self-inflicted.”
Further down the document, a piece of red italicised text falsely states: “If you consent to taking a Covid-19 vaccine your consent is ‘self-inflicted’, it was your choice to have the experimental medical procedure and therefore insurance will not cover any damage or death. All injuries for insurance must not be accidental and a treatment by consent is not an accident.”
In response to this, a spokesperson for Allianz said “[We’re] aware of incorrect information being distributed in relation to Covid-19 vaccinations and life insurance. Allianz has placed a Covid-19 Frequently Asked Questions page on our website and encourage customers with questions to refer to this, or call us.”⁵
¹ https://www.yourmoney.com/insurance/insurers-pay-200m-in-covid-related-death-claims/
² https://www.ftadviser.com/life-insurance/2021/05/05/warning-issued-over-scam-claiming-covid-vaccine-voids-insurance/
³ https://www.aviva.co.uk/help-and-support/coronavirus/life-critical-illness-and-income-protection-customers/
⁴ https://www.zurich.co.uk/insurance/coronavirus/life-and-critical-illness-insurance-customers
⁵ https://www.ftadviser.com/life-insurance/2021/05/05/warning-issued-over-scam-claiming-covid-vaccine-voids-insurance/
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