How will your insurance be affected if you get Covid?

This month we’ve seen Covid-19 numbers increase exponentially – particularly in Auckland – following the emergence of Omicron in our communities.

While the outbreak wasn’t unexpected, it’s still causing plenty of disruption and frustration as we all navigate this fresh wave of uncertainty.

For many of us, questions like ‘is this runny nose hayfever or Covid?’ and ‘will my child become a close contact through school?’ are a constant worry.

We believe that, beyond these day-to-day concerns, it’s also time to make sure that you’ll be covered financially in the long-term, should you come down with Covid.

So, how can I prepare for Covid financially?

Two years into this pandemic, we’re all very familiar with the common effects and complications of Covid-19. Though many people will experience just a minor ‘cold-like’ illness, a small percentage of the population will develop much more serious symptoms and/or complications.

Unfortunately, if you do experience a complication, it could mean an extended period where you will not be able to work. Fortunately, it is possible to arrange insurance cover that will protect you should this happen.

What kinds of insurance should I be looking at?

There are a number of ways that insurance can protect you financially, should you contract Covid.

• Income Protection: If you’re unable to carrying on working due to illness, Income Protection will provide you with a monthly wage to cover you financially.

• Trauma Cover: Should you become critically ill, Trauma Cover will see you receive a lump sum payment to offset any financial disadvantage.

• Life Insurance: While death is an unlikely outcome, especially if you are fully vaccinated for Covid, if the worst does come to pass then Life Insurance will ensure your family has adequate financial support.

Now’s the time to get your insurance sorted

At the time of writing (February 2022), the majority of New Zealand’s insurers have not yet excluded claims that arise following a Covid infection.

However, with a significant proportion of the population expected to contract Covid, insurers may well update their policies to exclude claims that arise after an insured person contracts Covid.

When weighing up the risks, we believe that an early conversation with your insurance advisor is well worth it to ensure you are adequately covered against Covid – both now and in future.

Likewise, if you have children who are currently uninsured then now is the time to put policies in place to protect them going forward.

We strongly advise you to contact your insurance advisor as soon as possible to ensure your current insurance will provide adequate protection. Don’t have an advisor? Click here to find a Plus4 advisor near you.