IPTF – Two years on: The long tail of Covid 19 and protecting incomes

Katie Crook-Davies, co-chair of the IPTF

Using the word turbulent to describe the last two years doesn’t really do justice to the reality we’ve all lived. And while a different kind of turbulence now rages on in Ukraine, the Covid-19 pandemic seems to have taken somewhat of a backseat. We’re back to ‘normal’ – in England at least, restrictions have been lifted and we are no longer legally required to wear masks, though, I’m not sure they’ll ever be gone completely from our lives. Perhaps we’re all a bit bored of talking about Covid? Because although case numbers and hospital admissions are rising again, we take comfort in the fact that the vaccinations are stepping in and saving lives.

Fortunately, C19 related death rates are staying at a relatively low level, but for many, 1.5 million (2.4% of the population) according to the ONS, Covid symptoms are sticking around. What was likely expected to be a short-lived bout of sickness, has become an uncomfortable condition that lasts weeks, if not months. The data shows that long Covid adversely affects the day-to-day activities of 65% of those 1.5 million self-reporters, who are suffering with fatigue, shortness of breath and difficulty concentrating. Perhaps more concerning though is that the group most affected by long Covid, is 35–49-year-olds, not the elderly many would expect.

For those unfortunate enough to contract long Covid, can income protection (IP) insurance help? Certainly, if a policy is already in place, IP can step in and replace a proportion of income should the individual find their symptoms limit their ability to work. And we are already seeing this financial support in emerging claims experience. Going beyond the claim though, increasing numbers of protection providers now offer additional support around long Covid, including physiotherapy and counselling, which can help people on the road to recovery post Covid, regardless of whether a claim is paid – benefits not to be undervalued at a time when NHS support may be limited.

And for those facing long Covid and without an IP policy – can they get cover? Well, a number of providers have removed the underwriting restrictions they originally put in place due to the pandemic, but understandably, question sets have had to adapt to the ongoing challenges presented. On the medical side, some insurers will ask about ongoing Covid symptoms and vaccination status, while others will want to check about recovery and ability to work. And on the financial side, people will likely be asked about their income and whether it was impacted by furlough or other schemes. Yes, Covid may have added to the underwriting process, but ultimately protection providers have thought seriously about any additional questions and the risks faced both if they do and don’t ask them. And they will always look to take a pragmatic view around finances and be understanding of income that may have varied over the last couple of years due to the pandemic.

While we don’t pretend to know what will happen next in the world, we can say that, as always, the best time to buy protection is before something goes wrong and that income protection policyholders are and will continue to be supported through any ongoing effects of Covid.

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