Life Insurance Applications Up By 7% In the US In 2020

With the ongoing global pandemic, the number of Americans who brought life insurance increased by seven percent, according to MIB Group.

The data-sharing service for insurance companies tracked the flood of applications in the past year, with coronavirus or COVID-19 affecting how people view life insurance. For the age group under 44 years old, the insurance applications have soared, first in the last several years ago.

MIB Group said for this age group to increase in terms of life insurance applications is ‘very impressive.’ This significant spike is influenced by how people feel they’re invincible at the time of the pandemic.

Life Insurance Applications Increased

“People are looking at mortality like they’ve never looked at it before, especially that younger age group,” said nonprofit Life Happens president Faisa Stafford. The coronavirus made people, especially younger generations, that we’re all mortal.

As more and more people lose their jobs, many workers are left with nothing but themselves to get health insurance packages. In the pre-pandemic time, employers help to pay for the fraction of health insurance.

Now that people are losing their jobs, people need to look out for themselves.

“If you leave your job, that life insurance goes away. People who were losing their jobs or being furloughed were losing their insurance coverage and looking for ways to replace it,” added Stafford.

In addition to life insurance applications, there’s also a surge in the number of people drafting their wills and trusts in 2020. The fear of the disease made people plan for their future, with people organizing the paperwork.

About 32 percent of people ages 18 to 34 drafted their wills due to the heightened COVID-19 cases. Around 21 percent of this group drew up paperwork as someone they know had contracted the virus.