April, Sunday 12, 2020 - By Weldon Desouza
Courtesy: Business Insider
Liz Knueven Mar 31, 2020
As coronavirus spreads, life insurance agencies see a surge in applications that shows no sign of slowing
Life insurance companies are getting a lot of attention during the coronavirus outbreak as Americans flock to get coverage.
“We are expecting that March could be our best month ever for both applications and policy sales,” Mark Sayre, head of risk solutions at online life insurance agency Haven Life, told Business Insider. Similarly, fellow online life insurance agency Fabric has reported 50% more applications than usual since February.
“We’ve definitely seen a strong uptick in consumers calling to ask about coronavirus, whether they’ve worked with us before or are completely new to life insurance,” Nicholas Mancuso, a life insurance expert and senior operations manager at insurance comparison site Policygenius, said.
“We’re getting a good amount of questions from consumers regarding how the process works to get underwritten for life insurance currently with coronavirus, whether or not it’s excluded, and about the precautions that examiners are going to take when they come out to see them,” he continued. “People are kind of nervous about people coming into their homes and things like that.”
As coronavirus spread and daily life began to change in the US, life insurance sales went up.
Life insurance is a safety net to provide for dependents or pay off debt
Life insurance, which issues a cash payment on the policyholder’s death, is generally recommended for parents with children, people with debt, or anyone with dependents.
Term life insurance, or insurance that covers a person for a predetermined period of time which can range from two to 30 years, is the most common and affordable. Term life policies can cost as little as $20 a month — much more affordable than the alternative whole life policies, which last a lifetime and are usually only recommended in specific cases.
Online agencies like Haven Life and Fabric offer term life policies most people can apply for with a few clicks of a mouse, and in some cases, a medical exam isn’t required. Experts previously told Business Insider that applying for and getting term life insurance is much the same during a pandemic as it has always been: The application process, premium prices, and underwriting haven’t changed. Prices for term life insurance policies are expected to hold steady.