“Ok, Ruth, what do you want to talk about that you think is an unusual question but has been on your mind?”
Ruth said she hesitated to say the “5 letter word – COVID” because so many are tired of talking about it. Yes, it still exists and has made an impact on people’s lives. Ruth has been reviewing her life insurance. The 15-year term “period” for her policy is almost up and she’s wondering what to do - she still needs the insurance. Did Covid impact life insurance rates and make rates higher for a new policy? Will a life insurance policy pay if death was caused by Covid? First, yes, life insurance does cover deaths from Covid. Some have already called and asked that question. The cost of life insurance claims has been high – an increase of over 15% from 2020. Will life insurance premiums increase because of this rise in claims? Most life insurance companies say it is unlikely that life insurance rates will go up – at least not immediately. Why? Life insurance rates are based on actuarial tables that extend out a century (100 years). The early deaths from Covid were mostly older people who were less healthy. A lot of them did not have any life insurance. Due to the lockdowns, isolation and lack of social functions and activities, there has been an overwhelming spike in suicides, alcohol related deaths and drug overdoses. Ruth told me about her friend who never stepped foot out of her house during Covid – not even in her yard. She had groceries delivered, talked with few, and did not see anyone – just four walls. This friend tends to “get down” and Covid certainly caused a spike in her depression. She is now working to get out of that depression. Yes, there is still uncertainty about the future effects of Covid. A neighbor, who has compromising medical issues due to medications she takes, had Covid in January. She was hospitalized a week while on oxygen. She continues to be followed by her physician who checks her lung capacity. She continues doing exercises blowing into a device to help increase her lung capacity. Covid did create a big demand for life insurance. People were scared. Many were concerned about financial protection for their families and their own final expenses. Yes, Covid did increase the awareness of life insurance. (Some businesses struggling to find workers are offering life insurance as an employee benefit/incentive.) Inflation is driving prices up for about everything. Since it costs more to live day to day, people are rethinking their need for life insurance and how much their family may need when they die. When was the last time you looked at your life insurance? How much does your family need? You probably review your car insurance every year. Which is more important – your car or your family’s financial needs when you die? Call me at 501-868-6650 and say “Caroline, can we talk?”
0 Comments
|
AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
September 2023
Categories
All
|