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Dec 18, 2021·5min

Does Covid Vaccine Affect Your Life Insurance Policy?

Everything has changed since the outbreak of the pandemic, and we're often left with more questions than answers about Covid. One query that seems to keep springing up is whether or not getting vaccinated impacts your ability to get life insurance. In this guide, we've got the answers and are dispelling the myths to bring you everything there is to know about life insurance and the covid vaccine.

What impact does the Covid vaccine have on my life insurance?

While a growing number of Americans get vaccinated each day, alerting insurers that you've been jabbed doesn't bring your life insurance policies down, nor does it increase them. Providers aren't required to ask you for vaccine information, so it won't come up during the application.

There were initially some concerns about saying you had been vaccinated, with fears circulating that it could negatively impact your life insurance application in case something drastic happened in terms of side effects.

This is not the case, however, and it was disproved by the American Council of Life Insurers. CDC-approved vaccines won't come into play when you apply for life insurance coverage, and there's no reason to worry about them becoming an issue when you get a policy. On the flip side, having the jab doesn't give you access to lower premiums either.

So that's that, then. Covid vaccines have no impact on your policy?

That’s a bit of a grey area. Ultimately, life insurance providers don’t request information about vaccines before issuing a policy. So if you’re a fit and healthy person applying for life insurance coverage, disclosing whether or not you’ve had the vaccine won’t affect your premiums.

But there are some scenarios where telling your insurer about your vaccination status could help you get a premium. If you have a preexisting condition related to Covid and its impact, your ability to get a policy could be affected.

Some insurers have decided to limit access to policies during Covid due to the comorbidity risk. So if you’re someone at a higher risk of dying from Covid (diabetes, heart disease etcetera), you could find yourself struggling to get a life insurance policy. That’s where the vaccine can come in handy.

If you find yourself in a position where you have a preexisting condition that increases your chances of dying from Covid, being vaccinated could help reopen the conversation with the insurer about getting a policy. They may see it as a positive because it ultimately reduces your risk of catching Covid and could make you more insurable.

Does it matter which Covid vaccine you get?

If you decide to disclose your vaccine status because you think it might help get a policy, you may be wondering if there is a preferred option. Truth be told, any CDC-approved Covid vaccine will be just fine, regardless of whether it's Pfizer-BioNTech, Moderna, or Johnson & Johnson.

Essentially, there’s no indication whatsoever about the type of vaccine you get. And the most important factor is that you get whichever one is available in your area, which is the official stance of many public health experts.

What if I already have life insurance?

Again, there's no need to disclose whether or not you've had the vaccine to your life insurance provider. The majority of life insurance policies are fixed at the time of issue, which means coverage is based on your age, health, and risk status at the time of the application decision.

If you have a term policy that expires, then you may be subject to a higher premium if you renew. But this will be based on your age, health, and risk status when reapplying– not on if you've been vaccinated. Ultimately, you can expect your premiums to remain the same if you've already got a policy but have since received the Covid vaccination.

If you have a policy in place and contract Covid, there’s no need to contact your insurer–unless the worst happens and you succumb to the virus. In that case, your insurer would need to issue the death benefit to your beneficiary.

Should you be in the middle of filling out the application and your Covid status changes, then you should inform your life insurance carrier immediately. Life insurance policies are fixed at the time of issue. So if your health status changes between the application and time of issues, it may be considered in the life insurance underwriting process.

Of course, that doesn’t just apply to Covid. Any new health diagnoses during the application should be disclosed. Otherwise, it could impact your chance to claim on the policy later down the line.

In conclusion: life insurance and Covid vaccines

At times, life insurance policies can seem complicated and require plenty of information to fill out. But in reality, it's pretty straightforward: carriers offer policies and set fair and affordable premiums based on quantifiable risk–they need to be sure of all factors before deciding on a policy. Therefore, disclosing if you've had the vaccine can work to your advantage as it essentially shows that your risk of getting Covid reduces, especially if you already have a preexisting condition. But you are under absolutely no legal obligation to do so.

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