Impact of Covid 19 on Pensions, Investments & Life Cover
Coronavirus, market falls and your investments – what you need to consider
We recognise that market falls caused by the spread of the coronavirus may be causing you some concern about the performance of your pension, savings or retirement investments. We appreciate this can be unsettling, especially if you have seen policy values fall as a result of recent events. While we must remain aware that past performance is not a reliable guide to future performance, when markets experience volatility due to major global events like this, they have recovered over time.
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Making informed decisions
Speaking to the right people about your concerns can help you make informed decisions. Your financial adviser understands your financial position and your goals. Your pension or investment is either invested according to your risk profile or is invested in a lifestyle fund which derisks as you near retirement. Don’t make any investment decision such as switching funds or stopping payments without first talking to your Financial Broker.
Life Cover and Income Protection
Does my existing policy cover COVID-19 or does COVID-19 impact my ability to claim under my existing policy?
The cover you had before COVID-19 won’t change as a result of COVID-19. The cover you have depends on the type of policy you have and the benefits you selected when you took the policy out. Here’s an overview of types of cover and the impact of COVID-19:
Life Cover: If you have cover for death on your policy and death occurs as a result of COVID-19, the death benefit will still be paid assuming any other conditions for payment of a death benefit are met. There is no exclusion in our policies for death arising from a disease such as COVID-19.
Specified/critical/serious illness cover: While it depends on the terms of the policy you hold, in general COVID-19 is not one of the serious illnesses covered by our policies which would result in a serious illness benefit being paid. What serious illnesses are covered will be clearly set out in your policy conditions and in some cases the severity level required before an amount is paid. While COVID-19 itself may not be covered, COVID-19 does not impact your ability to claim for serious illness benefit if you meet the definition of one or more of the serious illnesses that are covered by the policy.
Hospital cash benefits: If you have cover under your policy to protect you in the event you are hospitalised, then hospitalisation as a result of COVID-19 won’t prevent you from relying on that cover. Please do however refer to your policy conditions to understand what hospitals are covered.
Income Protection: If you have income protection benefit under your policy, COVID-19 won’t adversely impact that benefit. If you meet the definition of disability as set out in your policy conditions then your income protection benefit will be paid after any deferred period that applies. No new conditions will be imposed and payment will be made where a valid claim arises under the existing terms.
Feel free to contact me if you have any questions. Regards Robert Keary (B.Sc QFA RPA)