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    DI Coverage and COVID 19

    Insurance coverage and COVID-19

    We know that you and your clients may have many questions about COVID-19.  As you know, things are changing quickly. The guidance below is provided by our friends with Principal Financial Group.  

    Please note the information only reflects how Principal is viewing this situation and that it does not represent every DI carrier in the industry.

    Employer-provided insurance

    Here’s how COVID-19 impacts disability and life insurance policies made available to you through your employer.

    Are employees considered Disabled if they're quarantined due to COVID-19?

    If one is under quarantine for COVID-19, one does not automatically have a disabling medical condition to satisfy the definition of disability under our policies. As with all claim submissions, the definition of disability and all other provisions outlined in the policy must be satisfied.

    Do employees qualify as Disabled if they fall ill due to COVID-19?

    Claims for COVID-19 will be evaluated the same as any other illness. As with all claims, one must satisfy the definition of disability and all other provisions outlined in the policy.

    Will employees remain eligible for coverage if they are required to stay home, but cannot work from home?

    Standard practice is to continue coverage until the end of the month. However, if their time at home extends into the next month, coverage will continue until the end of that month, provided premiums continue to be paid. If they have tested positive for COVID-19, coverage will continue for the duration of the illness, provided premiums continue to be paid.

    If employees are required to work a reduced schedule and no longer meet the minimum hours of eligibility in the policy, will they remain eligible for coverage?

    Standard practice is to continue coverage until the end of the month. However, if the reduced schedule extends into the next month, coverage will continue until the end of that month, provided premiums continue to be paid.

    In the unfortunate incident of employee layoffs, how long can coverage be continued?

    Standard practice is to continue coverage until the end of the month. However, if layoffs extend into the next month, coverage will continue until the end of that month, provided premiums continue to be paid.

    Do employees qualify for critical illness insurance benefits if they are quarantined or fall ill due to COVID-19?

    Critical illness policies pay benefits when insureds are diagnosed with illnesses specified in their policies. COVID-19 is not a specified illness under our policies and thus benefits are not payable.

    Will the death benefit be paid under an employee's life insurance policy if they die from COVID-19?

    Yes, as long as the policy is in good standing (premiums are paid current). Your policy covers your death, regardless of the cause.*
    * Subject to contractual terms of the policy and any applicable rider.

    If my company has to cease operations due to impacts from COVID-19, will  coverage remain active?

    Yes, your coverage remains active as long as premiums continue to be paid.

    INDIVIDUALLY PURCHASED insurance

    Here’s how COVID-19 impacts new and existing disability and life insurance policies.

    If my business or company I work for closes due to impacts from COVID-19, will I still have to pay premiums on my policies?

    Your life or disability policy will remain in force as long as the required premiums and any required loan payments are made, subject to the terms of the policy.

    Am I considered disabled if I am quarantined due to COVID-19?

    If you’re under quarantine for COVID-19, you do not automatically have a disabling medical condition to satisfy the definition of disability under our policies. As with all claim submissions, the definition of disability and all other provisions outlined in the policy must be satisfied.

    Do I qualify as disabled if I fall ill due to COVID-19?

    Claims for COVID-19 will be evaluated the same as any other illness. As with all claims, you must satisfy our definition of disability and all other provisions outlined in the policy.

    Does the Chronic Illness Rider on my life insurance policy cover COVID-19?

    This rider covers an illness or incident that prevents you from doing two of the six activities of daily living (bathing, continence, dressing, eating, toileting, or transferring [which is moving from out of a bed, chair, or wheelchair]).

    Will my Disability Business Overhead Expense policy pay a benefit if my business is closed due to impacts of COVID-19?

    You must satisfy our definition of disability and all other provisions outlined in the policy, so a Business Overhead Expense policy would not automatically pay a benefit if a business closes due to COVID-19.