LV= has no plans to change its policies or prices due to the rising concerns over the Ebola virus outbreak, Myles Rix has said.
The managing director of protection for the life and pensions provider said: “Although the outbreak has not yet been contained and the position is changing week by week, it is still not endemic in the UK.
“Sadly there are many other accidents and illnesses that we all face that are much higher risks today. We have no plans to change our policies or prices due to Ebola at this time.”
His comments came in response to warnings from Michael Ward, managing director of the comparison website PayingTooMuch.com, who said life insurance policy prices could rise.
He said: “For policies already in force, if a death occurs as a result of Ebola current life insurance would pay out in full. But for new life insurance policies, are prices about to rise and will they cover Ebola?”
Mr Ward said if the virus began to mutate and transmission became easier, insurers would either apply an exclusion for Ebola deaths for new policies taken out or increase premiums.
He added: “I would expect insurers are already reviewing the position on a regular basis and expect them to react if circumstances change.”
PayingTooMuch.com is a consumer outlet for Eclipse Financial Management Limited.
Adviser view
Robert Harvey, senior adviser for Sussex-based Drewberry Finance, said: “The two key points are that if Ebola spreads significantly, insurers will have to raise rates for new policies.
“However, as life cover tends to come with guaranteed premiums they would most likely end up with huge losses on their current books, depending obviously on how big an impact it has on the mortality rate.”
