Perhaps it is a sad reality to consider, but more people are facing death and the attendant financial crises that go with it. They now see the value of a life insurance policy. One company states a thirty-five to fifty percent increases in applications and hiring more agents in order to handle them a necessity. This seems to be a standard situation across the country.
Changes to the System
While not much has changed for the life insurance world, they have adapted in a few ways. Some companies restrict policies for the very old, such as over 70 years of age, and others reduce the amount of 30-year policies sold. Although, these changes may be due to low interest rates more than the current crisis.
The biggest change is that the in-person medical examination that was standard practice for life insurance applications is now being waived in many cases. Instead, applicants must fill out a much longer health history application, and insurers rely more on credit score than health in order to set premiums.
Those particular premiums have not gone up since the Quarantine began. Things are holding steady and, in some ways, it is easier than ever to acquire a life insurance policy – perhaps the opposite of what some might have expected.
For COVID-19 Victims
Of course, the big question is how available life insurance will be for those who have or have had the virus. As far as those who have died from the disease, the policies are still paying out as usual, and there are no hidden restrictions that are coming to light at this time. If someone had COVID-19, they do have to go through a longer approval process, but they are still able to obtain coverage.
Some companies now require waiting periods of 30 days or as long as 90 days since the cessation of symptoms. Others propose waiting periods for those who have no symptoms but have been out of the country. But as long as the person recovers, they do not face extra hurdles to get a life insurance policy.
Those feeling the sting are those who have lost their jobs during the shutdown and were covered through their employer. These applicants must apply for new policies. In addition, those who are unable to make their premium payments feel the pain, but some life insurance providers are already offering forgiveness and relief. With so much bad news lately, it is refreshing to see that some things remain relatively normal.
Sources:
https://havenlife.com/blog/life-insurance-and-coronavirus-covid-19/
https://www.nerdwallet.com/blog/insurance/does-life-insurance-cover-coronavirus/
https://choicemutual.com/life-insurance-coronavirus/
https://www.moneyunder30.com/life-insurance-in-the-age-of-coronavirus/