Buying Life Insurance in the Age of COVID-19
You probably already know that life insurance offers financial protection for your loved ones, if you pass without warning. But maybe you hadn’t even considered acquiring life insurance until trudging through a global pandemic. Now things are just different.
According to reports provided by Deloitte & Touche LLP, COVID-19 has prompted a notable increase in life insurance activity. Deloitte went on to conduct a life insurance consumer survey in November 2020, which “revealed that 40% of interviewed underinsured buyer are now considering increasing their coverage because of the pandemic.”
Formerly the Medical Information Bureau, the MIB Group also reports younger people appear more interested in increasing mortality coverage (life insurance) in response to COVID-19. The reason? Although there is no direct data, it would follow that younger people are more likely to have children and mortgage debt to cover if they died.
Younger people have also experienced higher unemployment rates throughout the pandemic. As a result, they have looked to purchase individual coverage to make up for the loss of employer-sponsored policies.
Although the extreme government counter measures to COVID-19 have started to wane, the threat of COVID-19 will continue to exist. “Rather than die out, the virus will likely ping-pong back and forth across the globe for years to come.” – Foreign Affairs
New cases in the United States have more than doubled over the last 14 days (as of June 20, 2021) to an average of 31,745 a day, driven mainly by infections among the unvaccinated. With just 49 percent of the country fully vaccinated, the US government is scrambling to persuade more people to seek out shots so that the U.S. can achieve herd immunity.
As it stands now, the US market is just beginning to rebound. It’s going to take time.
And as the market begins to find solid ground, employers also need to be reviewing how to insure their employees are receiving a mortality benefit, which makes sense for them and their families.
Because of the ongoing pandemic, you may want to consider purchasing a life insurance policy. If you have an independent policy or if you carry the policy through your employer, it’s time to discuss the terms of your policy with an Enscoe Long insurance broker.
If you are an HR specialist, who manages insurance benefits, your goal is to provide best in class insurance products, including mortality benefits, for those you represent. It’s our job to ensure you reach that goal.
While some life insurance companies have changed their approach to applications in response to the COVID-19 outbreak, others are underwriting applicants with pre-pandemic guidelines. Enscoe Long will work with you to determine which company/policy will work with your unique circumstances.
If you already have an active policy in place and you pass as a result of a pandemic-related illness, your family will still receive the death benefit, even if you had traveled abroad. Life insurance covers pandemics, assuming you were truthful about your travel plans during the application process.
There are life insurance options available for everyone and working with Enscoe Long is the best way to find the right life insurance policy for you.
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