How has COVID-19 Affected People’s Views on Life Insurance?
It has been roughly two years since the COVID-19 outbreak first began its rapid spread. Since then, people across the United States and elsewhere around the world have revisited their current financial plans and, in some cases, decided to make some adjustments.
Life insurance is something that many people begin thinking about during times of uncertainty. The economic uncertainty caused by the pandemic caused many people to take actions to make their nest eggs more secure. Likewise, the decreased average life expectancy that has accompanied the virus has caused life insurance to become even more appealing.
Here at Insurancy, we wanted to learn more about how the COVID-19 outbreak has caused people’s views on life insurance to change. To do this, we issued a survey to 1,500 internet users who each answered up to ten questions. The survey was representative, included all genders and all ages, and was created using Google Surveys. The survey was run between February 16 and February 28 (2021).
About half of all respondents (48.2 percent) currently own a personal life insurance policy. Here are some of the most notable results we found:
1. Slightly More People are Interested in Buying Life Insurance
Though most people (69.7 percent) claim the pandemic has not changed their outlook on life insurance, there were slightly more people (4.2 percent) who are more eager to buy life insurance than those who are less eager (4.0 percent). This response makes sense, given that the life insurance industry is expecting application rates to increase over the course of the next year.
2. People Are Concerned about Life Insurance Rates Increasing
It is hard to tell whether the COVID-19 outbreak will really have a lasting impact on the cost of life insurance and the rates at which life insurance applications will be accepted. However, of the roughly 1 in 5 people that are concerned about life insurance changing, the most commonly cited concern is that rates will go up. Of those who are concerned, this issue was identified by about half of the respondents. Less cited concerns include not being able to buy life insurance and life insurance providers not paying out.
3. Most People Are Not Worried About COVID-19 Being Classified as a Pre-Existing Condition
The life insurance underwriting process involves many moving pieces. Your age, gender, lifestyle, and health will all directly affect whether you can qualify for a policy and what your monthly premiums will be. Currently, there are many health conditions that can cause premiums to increase. However, according to our survey, only about 1 in 4 people believe COVID-19 will be considered a pre-existing condition, whereas 3 in 4 believe it will not be.
4. About 1 in 12 People Have Discussed the Connection Between Life Insurance and COVID-19
Naturally, people who discuss the possibility of buying life insurance with their family and friends are more likely to want to buy it for themselves. Nearly 100 respondents (8.3 percent) stated that they have specifically discussed the connection between life insurance and coronavirus with other people. Though COVID-19 was the only health risk asked about in the survey, this rate is likely higher than it is for other conditions.
5. International Travel is Not Expected to Change Life Insurance Accessibility
Over the course of the next year, international travel is likely to significantly increase. In fact, some travel experts believe that international travel might return to “pre-COVID” levels by Spring 2022. This has led to some people wondering whether their decision to travel (or not travel) internationally will create any life insurance complications. About five times as many people (50.1 percent) claimed travel will not affect their ability to qualify as those who claimed it will affect them (10.1 percent).
6. COVID-19 has had a Direct Impact on a Lot of People
Looking at the data from our survey, it can be difficult to draw any strong conclusions. However, one that is clear is that many people have been affected by the COVID-19 outbreak. Only about a quarter of all respondents (26.6 percent) claim that nobody in their household has been affected. On the other hand, 8.5 percent have had someone lose a loved one and about 27.3 have had their employment situation change in some way.
Conclusion
Is now the right time to purchase a life insurance policy? Between the COVID-19 outbreak, low premiums decreased life expectancies, and volatile employment and stock markets, purchasing a life insurance policy has become increasingly attractive.
Contact us here to learn more about how purchasing a life insurance policy can provide you with the financial protection you need.
Methodology:
Insurancy conducted a survey of 1500 US residents. Participants are representative of all genders from ages 21 - 65. Survey participants were compensated to take part in the study.
