Monday, April 27, 2020

How many life insurance policies have "pandemic" riders?

I wonder how many life insurance policies have a clause that makes them void if the death is due to a pandemic?

Imagine you purchased a policy for a respectable amount of payout...lets say a cool, quarter-million. You made payments on it for all of your working life.

Then, you die but the company refuses to pay your beneficiary, let's say your wife who is now past her working years, because you coughed a few times before you slipped your mortal coil.

The hospital, as directed by the State, lists your cause-of-death as Covid-19 and the insurance company invokes the pandemic cause.

One must ask: Who benefits from re-assigning the cause of death from other, natural causes to Covid-19? Who benefits?

That would almost make sense from one perspective. Life insurance companies are at risk of going bankrupt. Their business model depends on a smooth, orderly, continuous exit of paying customers. If too many customers die in a given six month period, and if the stock market tanked, then they run out of assets and issue rubber checks. They go bankrupt.

Hence the pandemic clause.

Hence the government's bounty on C-19 deaths where hospitals get compensated for declaring questionable deaths as being due to C-19. The hospital gets $19k. The insurance company does not need to pay out $250,000. The politicians get the undying gratitude of the insurance company with deep-pockets and granny (your wife) gets screwed.

The Book I take moral direction from takes a very dim view of profiting at the expense of widows and orphans.


  1. Isn't that what socialism is...separating consequences from conduct.

  2. I think the correct answer is, Nearly All of Them. Every contract I ever signed had long pages of dense language that only the lawyers customarily read. The Boilerplate. Acts of God and Force Majuere were always a feature.


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