Prague People have become more interested in life insurance because of coronavirus. It mainly targets products that will compensate them for lost wages in the event of their illness, ordered quarantine or the need to stay at home with the child, for example due to school closure. Insurance of incapacity benefits or, for example, childcare, is usually covered by a life insurance policy or can be arranged as a supplementary insurance.
The disease does not only mean health problems, but also the loss of part of earnings due to home treatment, hospitalization and subsequent temporary incapacity for work. And in the extreme case, permanent health consequences cannot be ruled out, which can mean even partial or complete disability or even death. All this threatens the financial stability of patients and their families. Life insurance or its supplements can help, thanks to which the patient or a parent who has stayed at home with the child can receive the agreed daily benefits from the insurance company.
Covid like any other disease
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“People generally don’t admit that life also has its downsides. They rely on sustained economic growth, they do not anticipate a potential economic recession. Even with possible health problems and their consequences, “describes Michal Korejs, product director of NN Životní pojišťovna (NN), the general attitude of Czechs to solving unexpected life situations. NN specializes in life insurance and is the third largest insurance company in the Czech Republic in this area.
In recent months, however, according to Korejs, people’s attitudes have begun to change. Other largest insurance companies that contacted Lidovky.cz also agree that people have started to take more care about financial security against health risks. “People are interested in arranging insurance for daily incapacity benefits, daily benefits for hospitalization, nursing allowances, bridging involuntary unemployment in relation to loans and the like. We record a truly dynamic increase of around six percent in the first half of the year, mostly in commonly paid products, ”concludes Eva Svobodová, a spokeswoman for Uniqa insurance company.
Interest in life insurance due to the coronavirus pandemic is growing.
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“After significant declines in the spring (especially in April and May), new stores returned to values better than last year’s results. Even from the overall point of view, the interest in risky life insurance products is still significantly increasing, “says Milan Káňa, a spokesman for Kooperativa, the number one in life insurance. According to him, the greatest interest is in products connected with the care of a family member. The cooperative pays insurance benefits even if the child is not affected by an accident or illness, but must be at home due to school closures.
Other insurance companies are not yet able to quantify the increased interest of clients. “We see that clients want more insurance,” says Korejs. Generali Česká pojišťovna (GČP), number two in the life insurance market, also records greater interest of people in their own health and possible financial consequences. “However, we will be able to evaluate how this beginning trend is written into the selected premium only with a certain distance,” says GČP spokesman Jan Marek.
At the same time, many people in insurance companies have a targeted interest in coronavirus insurance. “Currently, we are solving a number of questions from clients, who are mainly asking how covid-19 is dealt with within life insurance. They are mainly interested in how it is with the ordered quarantine, child care, incapacity for work and hospitalization, “says GČP spokesman Marek.
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According to Michal Korejs, viral disease is and always has been one of the health risks covered by the insurance. Although it was not talked about, because due to the maturity of our civilization, it was not considered dangerous. Which applies to the entire insurance market. “Covid is automatically part of the insurance. And if the clients already had agreed risks, such as serious illness, hospitalization, incapacity for work, permanent disability, provision of permanent care or death, there is no need to change anything in those insurance policies, “emphasizes Korejs.
According to him, the most common risk that arises and that NN reimburses in connection with the covid is incapacity for work insurance. If someone falls ill, they receive a daily benefit from the insurance company, which they have agreed in their insurance contract. For LV, it can be from 100 to two thousand crowns.
Beware of quarantine
One of the most common things people are interested in in connection with covid is quarantine. Here, the approach of individual insurance companies may differ. For example, NN pays for such a forced work break only if the affected employee falls ill himself during or at the end of the quarantine. Generali Česká pojišťovna, on the other hand, pays for the quarantine.
Insurance companies can also take a different approach when arranging a new life insurance policy. They will be interested in whether the applicant has undergone covid and whether he has a chronic disease, such as diabetes or a more severe form of asthma. The conditions will be adapted to this – for example, the minimum time that must elapse between recovery from the covid and the conclusion of the insurance contract, or the amount of the sum insured.
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