Life Insurance Rates and COVID19

As discussed in our previous blog the Life Insurance industry is undergoing several changes as a result of the COVID 19 pandemic.

The good news is insurance carriers are still issuing policies and particularly for people up to the age of forty it has never been easier to get life insurance.  Many of the larger insurance carriers are issuing policies of up to $2,000,0000 without medical evidence. To help make the applications process even more convenient all pertinent documents are available online and e-signatures have finally been permitted.

The last change we can expect to see revolves around pricing. Life insurance pricing is not only based on mortality but the ability for insurance companies to invest premiums. With both the bond market at a historic low and more COVID deaths likely to come, life insurance companies will have to increase their policy premiums. Byron Udell at Accuquote insurance stated “Pre-COVID-19 life insurance rates are STILL available… but not for long. If you’re even considering life insurance – you better move fast. In other words, if you want new coverage, or you want to increase your existing coverage, get it before the prices go up!”.