COVID-19 and Group Life Assurance benefits
Group Life Assurance schemes do not have any general exclusions on cause of death, therefore COVID-19 related deaths are covered. Having consulted with all major providers, our current understanding is that there are no exclusions or amendments as a result of the pandemic.
- Deaths due to COVID-19 will be covered as normal provided that all normal policy terms have been met, and the employee was considered ‘actively at work’ at the time the death occured
- Furloughed employees will fall into insurers’ standard ‘temporary absence’ conditions and will continue to be covered
- Employees who have been advised to shield following specific medical advice are not classified as ‘actively at work’. This may mean that, during any policy renewal or rebrokerage exercise, such employees should be declared as long-term absentees. Particular care should be given to ensuring this is made clear so employers are clear on the status of their coverage
- Some providers include a standard general exclusion in place for travel to a country that has a restriction in place by the Foreign Office
- As the Foreign Office has advised against all travel (red zone) to certain areas, Group Life Assurance will not cover individuals subsequently travelling to these areas on business. They will, however, cover any individuals who travelled on business to an area which was not a red zone when they travelled, but has since become a red zone