How is Your Life Insurance Company Helping You During COVID? It’s Time To Find Out.

On March 19, 2020, Pennsylvania’s Insurance Commissioner, Jessica Altman, issued a “Notice to Insurance Companies Regarding Policyholders Affected by the COVID-19 virus.”

The notice specifically instructs insurance companies to relax due dates for premium payments, extend grace periods, waive late fees and penalties, and allow payment plans for premiums payments to otherwise avoid a lapse in coverage. Additionally, insurers were instructed to only consider cancellation or non-renewal of policies after exhausting other efforts to work with policyholders to continue coverage.

Notices similar to this are not unique to Pennsylvania-regulated insurers. In fact, most states have issued a similar notice to insurers encouraging them to act in good faith with their customers during this unprecedented time. If you have a life insurance policy currently with one of the larger companies, you may have already gotten some form of communication advising that premium notices were being suspended. After seeing a few of these types of letters, one thing is abundantly clear: the plan of action for both the insurers and the customers is incredibly unclear. 

Putting myself in the shoes of a customer who received a notice that my premium payment notices were being suspended, I would have a laundry list of follow-up questions, including: 

• Does this mean I should stop sending my premium payments for my life insurance policy? 
• If I don’t send in my premiums, how can I be sure the insurance company won’t cancel my policy? 
• Does this mean I will owe all accumulated premiums once the insurance company decides to start actively collecting premiums again? 
• What if I don’t want the insurance company to stop sending me the premium notices?
• How can I be sure that the insurance company is going to keep my coverage in place? 

Honestly, I can go on forever about what information is not provided in these vague letters sent out by insurance companies in response to COVID. What IS generally provided in these notices is something very valuable, however: accurate contact information. Correspondences from insurance companies almost always include a mailing address, the name of the department or person sending the correspondence, a phone number and usually a fax number. 

As an educated and proactive customer, you know that taking the bull by the horns and reaching out to the insurance company directly is the best course of action. Make a list of the questions you have regarding how your policy will be handled during the COVID response. Feel free to use the list above for some examples. Call the insurance company first thing in the morning, right when they open. Make sure you provide information such as your name, policy number, and date of birth. Explain your concerns, ask questions, and make sure you speak with someone who will give you answers. 

Some of you might be thinking; “I haven’t received anything from my insurance company regarding their COVID response protocol.” Consider this your notice that it’s time to call your insurance company and get some answers.