Will the COVID-19 Vaccine Affect my Accidental Death and Dismemberment Coverage/Claim?
Last week, we looked at how the COVID-19 vaccine could affect a life insurance company’s decision to pay out under a regular life insurance policy. If you missed last week’s post, you can check it out here.
This week, I wanted to take a look at how the COVID-19 vaccine can affect accidental death and dismemberment (“AD&D”) coverage. Because AD&D policies are designed to cover a very specific type of loss, we will see a lot more variation in claim outcomes in COVID-related losses. First and foremost, it is important to remember that AD&D policies do not have a contestability period. Therefore, any time a claim is made under an AD&D policy, the claim will likely be investigated to some degree to ensure that it falls within the policy’s definition of “accidental loss”. Many of those claims will be denied.
With regards to COVID-related deaths, an AD&D claim will almost certainly be denied. The reason being that most, if not all AD&D policies, narrowly define the term “accident” and specifically exclude deaths as a result of medical conditions or illnesses. I have yet to find a way to argue that COVID-related deaths are not excluded as a medical condition or illness. Therefore, I can confidently say that COVID-related death claims will almost certainly be denied under an AD&D policy.
With regards to the COVID-19 vaccine, there are a few things to consider: (1) If an insured person passes away shortly after receiving the COVID-19 vaccine, will the AD&D claim be denied? (2) Does the COVID-19 vaccine provide the insurance company with ammunition to potentially deny an AD&D claim in the future? (3) Should you avoid getting the COVID-19 vaccine to protect the integrity of your AD&D coverage?
If an insured person passes away shortly after receiving the COVID-19 vaccine, the AD&D claim may be more thoroughly investigated, and possibly denied. An insurance company is always looking for a reason not to pay insurance benefits if possible. Therefore, medical records showing complications related to the COVID-19 vaccine, or a death very closely following the insured’s receipt of the vaccine may throw up a red flag for the insurance company indicating that the insured’s death was caused by a medical condition or illness. However, in this situation, the beneficiary should certainly speak with a life insurance attorney for a thorough case evaluation. Not only will the attorney be able to confirm whether the denial was lawful, but also appeal the claim denial on the beneficiary’s behalf with no out-of-pocket costs.
Some of the shadiest life insurance companies will use the COVID-19 vaccine as ammunition to potentially deny an AD&D claim in the future. I have helped plenty of clients who received an AD&D claim denial because the insured had an extensive medical history. The insurance company uses this extensive medical history as the basis for their denial, insisting that the medical complications contributed to the insured’s death. Therefore, I would anticipate that history of receiving the COVID-19 vaccine will eventually serve as the basis for some companies to deny a beneficiary’s AD&D claim. However, the good news is that this type of denial may very well be unlawful and may be overturned with the help of a good life insurance attorney.
If you or a loved one are interested in getting the COVID-19 vaccine, it would be very silly to avoid getting it to preserve the integrity of your AD&D coverage. If a life insurance company uses the COVID-19 vaccine as a basis for denying your claim under any policy, you should not take no for an answer. Contacting a life insurance attorney experienced in appealing denied life insurance claims is the best and most efficient way of ensuring that your denial was lawful. Not only will it save you time and effort, you also won’t pay any out-of-pocket costs. There is nothing to lose.
Next week we will take a look at how the COVID-19 vaccine may affect critical and chronic illness insurance claims.
