Analysis of the U.S. insurance market revealed an increase in applications for life insurance during the coronavirus pandemic, compared to the previous years. Apparently, buying a life insurance policy is now the most logical step as the death toll caused by COVID-19 continues to rise. More so now that the infectious disease has morphed into becoming a deadlier form of contagion.
According to related analytics, the number of life insurance policies sold by the insurance industry since 2020 had increased by double-digits compared to previous years’ sales and before the pandemic outbreak. Experts stated that the most likely reason is because many have come to realize the financial difficulties faced by loved ones in case of their death.
According to MIB, an insurance analytics firm, most of the people who are currently applying for a life insurance policy are under the younger age groups. There was an increase of 9% in the age group of 45 to 59 year olds while it increased by 13% among those aged under 44, and only 0.4% among the older age group of 60 and above. Presumably, these groups have families whose members are still largely dependent on them for financial support.
Why Americans Choose Life Insurance Policies in Particular
Active life insurance policies offer death benefits that would be received by a deceased person’s family, including death caused by a pandemic disease like the COVID-19 contagion.
A life insurance coverage will still be effective even if the deceased person had travelled to a high-risk coronavirus are; albeit subject to certain exceptions. Instances where death occurred while the applicant is still being considered for approval; or if the deceased failed to divulge particular information in his application about previous exposures to COVID-19 transmissions; e.g. travel to a high risk region prior to the application for a life insurance.
Those who are still contemplating to apply for a life insurance policy can still do so but the process might take longer. Moreover, insurance providers will evaluate risks based on the applicant’s location, travel circumstances and behavior, in addition to existing health conditions. Applicants who plan to travel in high-risk regions or countries, should wait for the approval of their application before pursuing any travel plans.