The last few months have been a stressful time for humanity. The mental load of worries and concerns arising from Covid-19 are many and varied. Humans are resilient and while we adjust to our new ways of working, shopping and restricted travel, there are still new worries arising for many of us as pandemic lingers on.
Adjusting to change
In the early days of the pandemic, when the shock was fresh and new, the majority of conversations with clients focused on the impact of stock market shock on their retirement savings. Our clients work in the construction and related industries, so they were all impacted by the site closures across the country.
As that shock has been absorbed, people naturally move on to the next worry.
There is nothing like a global pandemic to remind us of our mortality and to take actions a result of this. Some of the most common queries Milestone Advisory received were related to protection benefits. Many clients had concerns around their existing cover. For those who had yet to address their protection needs, there were questions as to whether it too late to adopt relevant cover.
In this article, we cover some of the questions we have received over the past number of months. If you have specific queries relating to your existing or cover, or simply wish to make a start on preparing and protecting your future, we are happy to help. Simply contact us via the website.
Has my Life Cover been affected by Covid-19?
Overall, existing personal cover has not been affected. For the majority of policies, if you die as a result of Covid-19 your Life Cover will pay out as normal.
My salary has been temporarily reduced. Are my company protection benefits also reduced?
This may vary depending on provider. The company scheme we administer in Milestone Advisory, has elected to keep members on cover for their full benefit for a defined period and will then review their policy on this at the end of this period.
I have an Income Protection policy. Can I claim if I am self-isolating or diagnosed with Covid-19?
An Income Protection policy taken out to provide replacement income in the event that you become ill of injured. At the outset, you will select a “deferred period”. This is amount of time you need to be out of work before the policy will pay out. The normal deferred period as set out in your policy will apply. If you are diagnosed with Covid-19 and meet the definitions of disablement outlined in your policy after the deferred period, then yes, you will be covered.
Will my Specified Illness Policy pay out if I get Covid-19?
The policies only pay out on the diagnosis of a specific list of conditions agreed at the outset and therefore, will not pay out on the diagnosis of Covid-19 only.
Is it still possible to take out a protection policy now?
You can still apply for protection benefits such as those outlined above. Whether during a pandemic or not, there are certain things a Life Assurance company will want to know about you before they agree to provide cover. These depend on a range of factors such as the level of cover you require, your age and that your health. In some cases, where the Life Assurance Company asks for additional medical evidence for underwriting, this is likely to take longer than usual to obtain as a result of the Covid-19 restrictions. If you has tested positive for COVID -19, the Life Assurance Company will defer your new policy application until you have fully recovered. This could take a number of months.
If you have any concerns about your policy you should contact your provider or your advisor. All of providers continue to operate normally, all be it with some delays.
We have no doubt that the current climate is challenging all of us more than we thought possible. The construction industry and related sectors have been one of the worst affected industries and as a result, seeking financial advice is more important than ever.
Our financial services consultant, Susan O’Mara specialises in the construction sector and can review your finances with you, explaining your options in clear English. No jargon – just the facts.
For further information please contact Susan O’Mara via email or phone: (01) 406 8020. Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.