News

The new coronavirus has uprooted much of daily life in the US. But when it comes to life insurance, experts don't see much changing. 

 

The application process, premium prices, and underwriting will be the same as they've always been, say experts from three different online life insurance agencies. It's still possible to get life insurance policies, and for term life policies, prices are expected to hold steady.

 

Life insurance is still very much available, and three experts from three different life insurance agencies report an uptick in policy applications in March 2020.

 

In a global health crisis, life insurance can be confusing. Will it still cover you if anything happens? And, is it too late to sign up? 

 

You're not the only one with life insurance on the brain.

 

Online life insurance agent Fabric has seen a 50% increase in applications since February, Allison Kade, Fabric's head of organic growth, told Business Insider. Amy Danise of Forbes reports that online life insurance agency LifeQuotes has seen a 29% increase in application since January 20.

 

It is reasonable to assume that a global health crisis like the coronavirus would have some impact on your life insurance policy acceptance and premiums, if you are currently in the application process stage.

 

The World Health Organization (WHO) has declared the coronavirus or COVID-19 a pandemic. The virus has spread to all corners of the world, infecting almost 2 lakh people and killing close to 8,500. In India (at the time of publishing this story), 147 people have tested positive for coronavirus and three people have died, according to the Ministry of Health and Family Welfare.

 

So, now the question rises, will a life insurance policy cover the death of a policyholder due to COVID-19? Also, will you be able to get a life insurance policy after contracting the virus?

 

Financial protection is critical for this segment where the loss of a breadwinner can lead to financial catastrophe. Insurers need to use technology and innovation to provide sustainable solutions for these customers.

 

Life insurance plans are financial instruments that primarily provide protection against financial risks. There are two types of financial risks that need to be protected against – untimely death and old age. The untimely death of a breadwinner places a family at a risk for future livelihood expenses and during retirement years the income-generating capacity of an individual reduces. Thus protecting future income is very critical.

 

Few if any types of insurance are less talked about yet so critical than life insurance. Its significance is right there in the name: If the unfortunate fate we don’t like to talk about suddenly and unexpectedly befalls you, life insurance is there to ease the process for all those around you after your passing.

 

We don’t like facing down potential doom, but digging into the details of life insurance policies is paramount to getting optimal coverage. And as with any insurance, there are a lot of details to consider. Whether you’re contemplating the options provided through your employer or other offerings on the private market, just the basic different forms of life insurance are enough to make you feel deeply uncertain.

 

The life insurance ecosystem was very different when I first launched my agency nearly five years ago. The term “insurtech” had yet to be coined, startups in the insurance industry weren’t receiving billions of dollars in funding, and it wasn’t as easy for customers to purchase quality life insurance products online. Today, there are dozens of new life insurance agencies, technology solutions and consumer products that are disrupting traditional life insurance and the way we serve customers.