PANDEMIC DRIVES LIFE INSURANCE SALES AMONG YOUNG CONSUMERS

According to the Centers for Disease Control and Prevention, the COVID-19 pandemic resulted in a drop in life expectancy in the United States for the first time in decades (CDC). Life expectancy fell by 1.5 years from 2019 to 2020, the greatest one-year drop since WWII, when it fell by 2.9 years between 1942 and 1943.

The whole population’s life expectancy fell from 78.8 years in 2019 to 77.3 years in 2020. A lot of people are thinking about getting life insurance to protect their loved ones from death and the financial damage caused by the pandemic.

According to a Life Happens and LIMRA survey conducted in April 2021, approximately 31% of respondents said the epidemic has increased their likelihood of purchasing life insurance. And the most recent data shows that they followed through on their promise.

In the second quarter of 2021, total life insurance premiums in the United States climbed by 21%, the highest year-over-year increase since the third quarter of 1987. According to LIMRA, the total premiums increased 18% in the first half of 2021 compared to the same period in 2020.

Younger people are becoming more interested in life insurance. According to a LIMRA survey, COVID-19 has made 45 percent of millennials more willing to get life insurance. Younger people are more likely to have small children and larger amounts of outstanding mortgage debt to cover if they die, which may explain the rising interest.

During the pandemic, younger workers had a higher unemployment rate than older workers, so they may have bought individual insurance to make up for the loss of coverage from their employers.

Race influences the decision to purchase a policy or increase coverage. According to a Deloitte study, underinsured Hispanic and Latino purchasers were most interested in boosting life insurance coverage as a response to the epidemic, followed by black buyers.

According to Deloitte, this is due to greater unemployment rates among black and Hispanic/Latino people during the epidemic, resulting in the loss of employer-sponsored life insurance. COVID-19 disproportionately harmed black and Hispanic/Latino individuals in general.

September is National Life Insurance Awareness Month, and now is an excellent time to purchase a policy. During the pandemic, insurers have made it easier to purchase plans. Many organizations are temporarily removing in-person medical checks and simplifying the underwriting procedure to speed up the purchase process.

Since January 2020, companies with the best digital skills have seen a 30 percent to 50 percent increase in online life insurance sales, according to Deloitte. People prefer to buy online, and interest in agent-driven sales is falling. In 2020, only 41% of people will prefer to buy in person, which is down from 64% in 2011.

According to Deloitte, this is due to greater unemployment rates among black and Hispanic/Latino people during the epidemic, resulting in the loss of employer-sponsored life insurance. COVID-19 disproportionately harmed black and Hispanic/Latino individuals in general.

September is National Life Insurance Awareness Month, and now is an excellent time to purchase a policy. During the pandemic, insurers have made it easier to purchase plans. Many organizations are temporarily removing in-person medical checks and simplifying the underwriting procedure to speed up the purchase process.

Since January 2020, companies with the best digital skills have seen a 30 percent to 50 percent increase in online life insurance sales, according to Deloitte. People prefer to buy online, and interest in agent-driven sales is falling. In 2020, only 41% of people will prefer to buy in person, which is down from 64% in 2011.

People who purchase life insurance rarely regret their decision. According to LIMRA, nearly 40% of respondents indicated they wished they had bought it when they were younger. While many people assume life insurance is excessively costly, the majority of people underestimate the cost. According to LIMRA, 44% of Millennials believe term life insurance costs more than $1,000 per year, although the cost for a healthy 30-year-old to hold a $250,000 level term life insurance policy is closer to $160.

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