A collection of articles in various insurance topics – product of a long-established professional experience

Tips for Insurance Coverage during the Covid-19 Pandemic

The coronavirus has changed the world and impacts every aspect of our lives. The pandemic has increased the level of uncertainty and, consequently, the need for protection against the unknown. Insurance policies provide us with such protection and the ability to manage the world of uncertainty. When you buy the right policy you hedge your risks: should something bad happen, the risk will be transferred to the insurance company and your economic loss will be limited to the premium you paid and the deductible.
Because we are still in the process of learning what damage the virus can cause, it is too early to guess how the insurance world will change with regard to existing policies. But it is already clear that coronavirus exclusions will be inserted into various policies.
For your convenience, we have assembled 8 important tips to help you deal with the uncertainty:

Health insurance: We expect that the insurance companies will raise premiums or even decline to insure those who contracted COVID-19, even if asymptomatic. So our recommendation is that if you have come down with the disease, do not cancel existing policies at present. If you are in the process of purchasing a policy, hurry up and buy it now, without exclusions and at a low premium.

Pension insurance: Many workers have been put on furlough; many self-employed persons have had to shut down their business and are no longer making contributions to their pension fund. Suspending these contributions for a limited period will not have a dramatic effect on the pension account. For now, a directive by the Supervisor of Insurance guarantees all accumulated rights in a pension fund or executive’s insurance. Our recommendation is that you make sure that this is the situation with your policy; if you seem to have fallen between the cracks, because you or your employer failed to report your situation to the insurance company, when you return to work or switch to a new employer make sure that the policy is continuing.

Withdrawing funds: In the face of uncertainty, people tend to withdraw funds from their accounts and deposits. But those who fear losing their job and self-employed persons who are forced to close their business should make every effort not to withdraw funds they have put away for their retirement. Any withdrawal of severance pay compensation or pension benefits will significantly reduce your savings for the future and should be avoided if at all possible. Remember that throughout your working years the pension fund or executive’s insurance are your most valuable asset, after any real estate you own.

When the stock exchange is falling, there is an urge to run and withdraw the liquid funds from your provident fund or advance-training fund that are invested in the capital market. But do so with caution and realize that throughout history, ever since the stock exchange was invested, steep declines have always been followed by corresponding recoveries, so you should not rush to cash in your investments when the market is low.

Insurance portfolio: Today, when we are spending lots of time at home, is a good time to put things in order—and not only your cupboards and closets. This is when you should conduct a thorough evaluation of your insurance portfolio. This includes collecting the details of all your policies and payments to insurance companies. Our professionals will work with you to discover whether you have duplicate insurance, whether you have policies that can be canceled or upgraded, and whether your costs can be reduced. It is important to remember that as time passes your needs change (people marry, have children, and start new jobs) every few years.

Property insurance: Even during the lockdown, we do not recommend canceling your car insurance. Yes, the vehicle is parked most of the time, but you still go out to the store for essential purchases or for checkups. Another vehicle might ram into your parked car; or you may need road service when you have a breakdown. Saving a month on your insurance isn’t worth it if you do incur damage and lack coverage.

Mortgage insurance: We recommend that you review you policies on your home and its contents and verify their current market value.

Business owners: Everyone who owns a business, whatever its nature, should sit down and review the changes triggered by the pandemic. There may be policies you can cancel, or at least reduce their amount because of your decreased turnover. It’s important to remember that when you own a business you are responsible for its assets and for the employees and customers, so you should not cancel your insurance because of the situation.

Travel insurance: As the skies begin to reopen, it is important for us to emphasize the even greater uncertainty you face when you travel abroad. Overseas travel insurance has become complex, so you need to consult with an insurance professional (and not just a travel agent or website) in order to make sure that you are covered, even when far from home. As soon as you start planning your trip, contact our professionals to check out the best program for you.