So many things came to a halt when the coronavirus blindsided us all in 2020. Businesses closed their doors, and entire industries took a big hit.
Now, with what looks like a light at the end of the tunnel, some industries are making a comeback — and life insurance is one of them. But it won’t be business as usual.
Let’s look at how life insurance trends are changing in 2021.
Automated Underwriting
Because of social distancing mandates, more providers are moving away from old-fashioned underwriting procedures, opting instead to automate the process. Sitting face-to-face with an insurance agent for several hours to go over your circumstances is usually no longer a requirement.
But that’s not the only benefit for clients looking for coverage. Automation has spawned several other life insurance trends this year.
More Convenient Applications
Perhaps the most significant life insurance trends to come from automation are changes to the way consumers can apply for policies. Falling in line with other customer-facing businesses dealing with COVID-19 challenges, many life insurance companies now allow clients to apply through virtual meetings, over the phone, or via online forms.
These modern methods of applying for life insurance whittle considerable time off the process. Wait times to policy activation are now quicker than ever, and some consumers may receive approval in as little as a week.
Fewer Medical Exams
Fewer providers require applicants to go through a rigorous physical examination to receive life insurance. Instead, they use predictive modeling to assess an applicant’s eligibility for life insurance.
They may collect digital health data, including medical exam and prescription histories, and run it through an advanced algorithm to determine a person’s eligibility. This also shaves significant time off the process.
Industry Growth
With the mandatory business closures and quarantine rules that came with it, the coronavirus had many people sitting home, giving them plenty of time to take stock of their lives and evaluate their longevity. This deep reflection has led to an increase in policy sales.
Google searches for “life insurance” were up 50 percent from March to May 2020 compared to the same period in 2019, and 2021 shows no signs of a slowdown. But contemplation of mortality is not the only reason for the industry growth — depleted savings and retirement accounts have also played a role.
People have been dipping into their IRA, 401(k), or other investment plans to make ends meet during the pandemic and are now looking to life insurance as an alternate way to secure their family’s future.
A decline in rates in 2021 may also attract at least some new clients this year. Though rates may have increased a bit for people with comorbidities, they are trending downward for healthy people who do not smoke.
Final Thoughts on Life Insurance Trends for 2021
COVID-19 threw a wrench into the way companies do business. But unlike some devastated by the pandemic, the life insurance industry appears to be coming out of it as an improved version of itself.
Streamlined processes and relaxed eligibility requirements favor consumers, further fueling the uptick in interest for the product.
Bethany Insurance offers both term and whole life insurance to consumers near Glendora, San Dimas, La Verne, Azusa, Monrovia, and Chino Hills. If you’re ready to explore your California life insurance options, contact us for consultation and to receive a free quote.
