What to Know about Getting Life Insurance Post-Pandemic

During the turn of the new year, many people have happily bid their goodbyes to 2020 and the tumult that they experienced. However, the effects of the COVID-19 pandemic and financial uncertainty from the recession still remain strong. Though life may never be the same as it once was, the challenges of the past year can help us all grow to make wise decisions for our future as we hope for better days in 2021. Looking back on the lessons from the past year, here are some ways that life insurance has been affected by the pandemic and what you need to know about purchasing a policy today.

Understand COVID-19 Effects on Coverage

New Changes

With the widespread risk of COVID-19 lingering worldwide, many have grown concerned about how the virus will impact factors such as their eligibility for and premium rates for life insurance. While there have not been drastic increases in premium costs, in rejection of applicants, nor in death benefit claims, other changes have been made in the application process and coverage eligibility. For instance, when applying for a life insurance policy, you may see more COVID specific questions inquiring whether you have tested positive, or come into contact with someone who is. Those who are in this situation may have their application process postponed and could even experience a longer delay if they have experienced more extreme symptoms. Additionally, while some restrictions were put in place in the earlier stages of the worldwide pandemic, many of them, such as refusing temporary coverage and excluding those who recently traveled, have generally been loosened.

Health Risks

During this time, some insurance companies have implemented a stricter underwriting process when it comes to COVID risk. Those who have been hospitalized due to the virus or experienced severe symptoms may have a harder time obtaining coverage, though they will not be excluded simply based on these situations. This also applies to those with pre-existing conditions that increase their risk of becoming severely ill from COVID, such as asthma, diabetes, or other immuno-compromising conditions. On the other hand, healthy applicants with a much lower risk of contracting the virus will qualify for better monthly premiums. Furthermore, because there is a much greater risk of infection among elderly populations, some insurance companies have limited their issue of policies to those over the age of 70. While it is not impossible to get life insurance for those who are late in age, as companies consider the risks involved, the premiums dramatically increase afte a certain age.

Finally, as COVID-19 vaccines are just beginning to become available, it is still uncertain exactly how they will impact coverage and premium rates. Though since they are a preventative measure against the virus, protecting yourself in this way may prove beneficial if you are interested in obtaining a life insurance policy.

Consider a No-Exam Policy

No-exam life insurance policies have been offered by many companies before the pandemic, but they have since increased in popularity due to the inability of some applicants to receive an in-person medical exam. This type of life insurance offers what is known as accelerated underwriting based on more extensive medical questioning and data collection to determine each applicant’s risk and eligibility for coverage. This is especially useful for those who do not want to take any risk getting an in-person medical exam during the pandemic. These types of policies are now much more easily available and generally affordable; a trend which is expected to continue in the future.

Re-evaluate Your Finances

The COVID-19 pandemic also revealed a lack of financial preparedness for many households, especially through drastic unemployment levels and reduced work opportunities. As a result, people are looking critically at where their income is going in order to budget better and save for emergencies. Those who may have been comfortable setting aside a smaller amount of income in savings are now realizing that they will require more than they originally thought in the case of hardship. In spite of these financial challenges and new budgeting practices, many continue to look into life insurance because of the financial protection it offers to their loved ones in a time of need. As you evaluate your financial approach to the new year, consider not only your current expenses and needs, but also how you your family will be provided for in the case of death. Though it is not a pleasant thought, having the security of a sufficient death benefit can bring peace of mind in troubling times.

Buy While You’re Young

If the pandemic has taught us anything, it is that nothing is certain and it is to your benefit to be as prepared as possible. Many young adults do not consider life insurance as a necessity, however, younger and healthier applicants qualify for much more affordable policies. Examining average sample rates for healthy individuals can help you see how much can be saved by acting sooner rather than later. Even single and childless people who would like to have a family in the future can benefit from obtaining a policy. Taking these steps will allow you to lock in a low premium rate for a ten or twenty year term, ensuring a secure financial future for you and your loved ones as we continue into the unknown of 2021.

Get Protected with Life Insurance

Don’t wait until it’s too late, take the step to protect your loved ones and prepare for what lies ahead in 2021 and beyond. If you have been wondering how life insurance could benefit you in these difficult times, we can offer you answers and pertinent information at LifeQuote. Through our professional guidance, you will be able to find a life insurance policy with coverage suited to your specific needs, whether it’s a term, permanent, or even a no-exam policy. Find out how much life insurance coverage you need with our helpful insurance needs calculator and get a free instant quote with our easy quote generator today.