2020 has been a year of adjustments. And like many other things in life, the tidal wave effect will likely allude to a rippling impact of changes for month or possibly even years. As we begin to look forward to what a post-pandemic world will resemble, life insurance is something you may want to explore a little deeper as we ask: How will COVID-19 impact the future of life insurance?
During a time of lockdown, stay-at-home orders, and virtual doctors’ visits, we have begun to realize that there is no normal anymore. The days of simply filling out an application for a life insurance policy and completing an exam for approval seem to be a thing of the past. The good news? Life insurance policies are still available; it may just be a different process than what it once was.
If you’ve been thinking about life insurance, now is the time to buy. Rates are the lowest they’ve been in two decades.
The declining trend in cost is likely attributed to a variety of factors such as:
- Average Age of Death
The higher in age the insured (customer) is at time of death, the less the insurance carrier has to payout for the policy purchased.
- Technological Advancements
Innovative software has minimized the number of man-hours it takes to evaluate the risk associated with a life insurance applicant. It has also been a tremendous asset in life-expectancy and risk projections. With this combination of efforts, many insurance companies have been able to pass savings on to the insured.
- Lowered Reserve Ratios
Reserve ratios are the funds insurance companies must have on hand to cover claims filed by the insureds. These are typically regulated at the state level, and thanks to lowered requirements over the past few years companies have been able to capitalize on their return on investment.
As a result, we ask the troubling, yet necessary question: How will COVID-19 impact the world of life insurance?
While no one definitively knows the answer to this question, one thing that is certain. This pandemic has drastically changed the outcome of many things in life that we never thought would be altered.
If you or a loved one have considered purchasing a life insurance policy for you, the time is now. With changes that COVID-19 has brought to the world – deaths, financial collapses, unemployment and more – there are many unknowns about what life insurance costs and the buying processes will be like in the post-pandemic world.
At Seltzer Group Partners, our staff is specially trained in the shopping, buying and advisement process of life insurance. If you are looking to find how affordable a life policy is, contact us today.