The greater the demand for life insurance, the higher people’s anxiety about death seems to be. During the pandemic, this was especially true, prompting my wife and me to secure new 20-year term life insurance policies. With two young children, our anxiety significantly decreased once we were covered.
The pandemic heightened our awareness of mortality, not just for ourselves but also for our children and elderly parents. This was a tough period, compounded by our family battling illnesses like the flu, RSV, and COVID repeatedly over the winter. If only I could have transferred my health to my young kids to spare them the discomfort!
My role as a parent felt like it was constantly balancing the risks and rewards of everyday decisions, such as whether to take the kids to public places or send them to school when they weren’t feeling well. Over Thanksgiving, I managed to have my parents visit, although we had to limit their time with us to keep them safe from the circulating viruses, thankfully they remained healthy.
How COVID Affects Life Insurance Rates
I always try to back my feelings with data to see if they hold up logically. During the pandemic, I found an article explaining how COVID has shifted the life insurance landscape, noting that it might take insurers up to a decade to fully understand COVID’s impact on mortality rates. This includes potential long-term effects of the virus and the vaccines. If I had to guess, I’d say life insurance premiums are likely to increase as more data emerges on these risks.
Securing Affordable Life Insurance
In December 2021, after three years of searching and facing an upcoming steep increase in premiums for my expiring term policy, I finally locked in a new, more affordable policy. This wasn’t an easy feat, as a previous visit to a sleep center had complicated my health records. The new policy isn’t as extensive as my previous one million-dollar coverage but securing $750,000 at $110 per month gives me and my family peace of mind.
This was particularly reassuring as data showed a significant increase in Social Security retiree deaths over the pandemic, likely due to COVID, with a notable drop in people collecting benefits.
Life Insurance Demand During The Pandemic
It’s no surprise that anxiety and depression have spiked since the pandemic began, influencing behaviors like life insurance purchases. During 2020 and 2021, the life insurance industry saw application activity rise slightly, which is significant for this sector.
Future Predictions for Life Insurance Companies
With payouts increasing more than applications, insurance companies are seeing a pinch in their profitability. This imbalance is likely to lead them to increase premiums, especially as they factor in the long-term impacts of COVID on public health.
Life Expectancy Trends
Recent statistics have shown a startling decline in life expectancy in the US, the first in over two decades. This decline is more severe than expected, which could mean significant changes in actuarial data used by insurers.
Much Less Anxiety Now
Since securing our life insurance policies with Policygenius, the looming anxiety over our health and safety during the pandemic has greatly diminished. Knowing that we have taken steps to secure our family’s financial future brings immense relief.
Engaging With Readers
What are your thoughts on the changing trends in life insurance throughout the pandemic? Do you find the differences in application and payout rates surprising? Besides securing life insurance, how are you handling any pandemic-related anxiety?
For those looking into life insurance, comparing quotes can provide clarity and ensure you choose a policy that fits your needs. Remember, securing the right policy can be a significant step toward managing your worries about the future.
