How COVID-19 Has Affected Life Insurance Trends

How COVID-19 Has Affected Life Insurance Trends

COVID-19 has had people worried in different ways since it broke out toward the end of 2019. There has been an increase in health concerns, and it has affected people’s finances too. These changes have forced many to review their spending in various areas of life, including health and life insurance. According to a study released by Lightico, COVID-19 is one of the major factors influencing the purchase of life insurance.

Here are several ways that COVID-19 is impacting the life insurance industry.

Filling Out and Sending Insurance Paperwork

  • About 82% of consumers are worried about the dangers of leaving their homes. When it comes to applying for life insurance policies, 71.1% want to do it digitally. Roughly 51% prefer to fill out and send their documents to insurers by email, while about 20% would rather use their smartphones.
  • Only less than 30% of the consumers are comfortable delivering insurance documents via traditional means, according to the study. About 9% would visit an office in person, 14% would send via mail, while about 6% would prefer to use fax.

Financial Concerns

Some 56% of consumers are worried about their financial responsibilities. Responses to the current financial pressures vary from person to person, but 64.5% are reducing their personal expenditure.

Consumers Looking to Buy Life Insurance

  • One of the highlights from recent life insurance statistics and surveys is that 56% of consumers will probably purchase a life insurance policy now. Generally, almost half (48%) of the population are thinking about purchasing or expanding life insurance coverage for COVID-19-related reasons.
  • Also, young people are showing an increased interest in insurance, with the demographic twice as likely to get new coverage or increase their existing life policies as compared to before the pandemic.

Communication Preferences During the Pandemic

  • The largest proportion of consumers don’t wish to go to a physical agent’s office to buy insurance coverage. About 89% would rather buy online offerings, while only 11% are okay working with traditional agents. Also, 90.1% of policyholders prefer to have digital or remote interactions with their agents.
  • About 32% would like to engage their insurance providers via a professional business website, while roughly 22% are comfortable with email communication. Roughly 23% of policyholders would appreciate a phone call, while 12% are comfortable using an app to communicate with their insurer.
  • Consumers have been in touch with insurance providers about multiple concerns too. About 24% have communicated with their carrier about financial obligations or inquired on coverage issues emanating from the COVID-19 pandemic.

These are some of the latest findings on life insurance consumer behavior during the pandemic. In a COVID-19 era with plenty of financial uncertainties and unprecedented health risks, life insurance policies are a priority for many consumers.  Are you looking for help with your life insurance coverage? If so, then contact the experts at Steve Wilk Insurance. Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.