Shopping for Life Insurance? Here’s What the Pandemic Changed.

Wondering if you should get group life insurance for your business? You’re not alone. The COVID-19 pandemic has reminded us not to take anything for granted, including our lives, health, and loved ones.

That being said, let’s take a closer look at 2020.

Surviving America’s Deadliest Year

2020 was the deadliest year in American history. Approximately 3,358,814 people in the United States died and it was the first time the annual death rate exceeded 3 million.

The third leading cause of death was COVID-19, which claimed the lives of approximately 377,883 Americans.

That profound loss forced us to ask uncomfortable questions like, “Would my family be okay if something happened to me?”

As you can imagine, more business owners bought group life insurance to ensure that the answer to that question was, “Yes.”

How Group Life Insurance Changed

According to a survey conducted by Life Happens, 67% of Americans agreed that the pandemic forced them to take a second look at their finances. Another 30% said that they discussed life insurance at the dinner table.

This led to an increase in life insurance applications during 2020.

While there’s never a wrong time to shop for life insurance, the pandemic has changed a few things.

First of all, there’s never been a better time to submit an application that doesn’t require a medical exam.

In the past, a no-exam policy would cost more because the insurance company would be taking on a larger “risk.” The less information the insurance company knows about you, the larger the risk.

But the pandemic has made it more difficult to schedule doctor visits and in-person meetings. As such, many insurers are substituting medical exams for electronic health records, prescription databases, and other data.

Also, life insurance companies are offering no-exam policies at rates comparable to policies that need an exam.

Keep in mind that each person is different though. The insurer may still require a medical exam if you have pre-existing conditions or you’re of a certain age. Likewise, they may also require an exam if you’re shopping for coverage that’s worth millions of dollars. For this reason, you may not know if you need a medical exam until after you apply.

When you apply, you may notice some new questions related to COVID-19. For example, you may be asked if you or someone in your household has tested positive for COVID-19.

If you answer “yes” to either of those questions, the insurer may postpone your application.

There’s still a lot we don’t know about COVID-19. For example, we don’t know how having COVID-19 may affect a person’s health in the long run or their life expectancy.

In the near future, we can expect to see life insurance companies being cautious about insuring people who’ve tested positive for COVID-19.

Confronting Our Fears and Planning for the Future

It’s easy to think that nothing good came from 2020. But we hope that last year helped you become a more resilient, stronger version of yourself.

We also hope that instead of being afraid of death, you feel empowered to take control of your financial circumstances while you’re still alive.

Death has always been a taboo subject. Unfortunately, that doesn’t stop death from happening. It only creates more pain for those experiencing grief or who wish to plan their final arrangements.

Talking about group life insurance with your loved ones can be uncomfortable. But it’s necessary.

And if we’ve learned anything from the pandemic, it’s that we can’t put off important conversations.

Shopping for group life insurance can be stressful but it will also give you and your loved ones peace of mind.

To learn more, be sure to check out our blog post that explains the basics of life insurance.

Need Help Shopping for Group Life Insurance?

Choosing a group life insurance policy for your company is a big decision. The good news is that Michigan Planners is uniquely positioned to help. Our team is here to support yours throughout the entire plan year—not just at open enrollment.

Michigan Planners brings over 60 years of experience in the group life insurance industry. But unlike insurance companies, we work on your behalf to find competitive quotes for your business. We’re also proud to be a third-generation employee benefits agency that’s big enough to serve and small enough to care.

To get started, please call Michigan Planners at (800) 674-9235. You may also fill out our online contact form to speak with an advocate.