Domonique Rogers of NC State is an experienced insurance agent at Family First Life. In the following article, Domonique discusses how life insurance has changed following the pandemic.
Life insurance has always been a policy surrounded by hopeful benefits weighed against risks, especially in the context of tragedy or health failings. The COVID-19 pandemic only highlighted these topics.
According to Lending Tree’s experts, some of the factors about life insurance that changed during the coronavirus pandemic was the fact that life insurance became more expensive for those traveling to certain infected regions. Additionally, the sales of life insurance policies went up, demographics shifted, and technology advanced to accommodate more clients.
Below, Domonique Rogers of NC State discusses the three ways that the COVID pandemic has changed life insurance. By the conclusion, it will be clear that even though policies may have indeed changed, one thing that remains true in the face of a pandemic is that life insurance is crucially important for any individual to obtain.
Domonique Rogers on the Changing Landscape
Domonique Rogers of NC State explains that change can be uncomfortable at best, and downright frightening at worst. However, it is also serves as an opportunity for any individual, institution, or market to grow for the better. Let’s take a look at the three ways that life insurance changed due to the global COVID-19 pandemic in the list below:
- Sales of Life Insurance Policies Went Up
- Demographics Shifted
- Technology Advanced
Given the circumstances, these may each seem surprising in their own right. Domonique Rogers of NC State explains what caused the changes themselves, as well as what the benefits are:
1. Sales of Life Insurance Policies Went Up
Though it may be an unpleasant fact to look at, it is true nonetheless that fear has historically been connected with higher sales of life insurance policies. This makes sense, of course, because life insurance deals with the coverage of costs related to events of tragedy or distress.
When it came to changes caused by COVID-19, purchasers of life insurance policies had the unpleasant experiences of death and serious illness brought to the forefront of their awareness. Domonique Rogers of NC State explains that these realities came with a reminder that costs for funerals and the like could become just as present and burdensome very soon after.
Everyone began to realize that life insurance was not only something that everyone should look into, but something that they personally needed. Between the years 2020 and 2021, a massive change (maybe fear) occurred in the mindset of consumers.
Domonique Rogers of NC State reports that this is evidenced by the fact that 32 percent of potential life insurance customers claimed they were more likely to purchase life insurance because of the pandemic directly, and another 42% believed that they would be more likely to purchase life insurance after experiencing catching COVID personally.
This went for people who were already policyholders as well. According to LIMRA, 20% of life insurance customers were interested in increasing the coverage they were paying for as a direct result of COVID. If insurers capitalize on this increase in awareness, this sales spike could turn into massively increased growth.
2. Demographics Shifted
Domonique Rogers of NC State notes that the next noticeable change was an entirely different demographic of life insurance owners. Young adults began purchasing life insurance faster than any other age groups recorded after the start of the pandemic.
There was an increase of life insurance applications received by a startling 13% when it came to people applying who were under the age of 44.
This is a welcome change, since young adults can be said to have their own unique and highly important reasons for needing life insurance. Domonique Rogers of NC State explains that the coverage can potentially go toward large amounts of student debt or outstanding mortgages.
One of the possible causes for this change, other than facing the idea of mortality, was probably the higher rates of unemployment in younger worker demographics during the pandemic. Without their employer-assisted policies, younger people needed to purchase their own life insurance.
3. Technology Advanced
Finally, Domonique Rogers of NC State maintains that one of the most prominent changes to life insurance has been the overall advancement of technology in the industry. With the added factor of many in-person insurers becoming unavailable during quarantine, it is no wonder that 50% of life insurance consumers became more likely to purchase insurance through an automated process.
Thanks to this, insurers have begun putting their focus on predictive models in data analysis, and even artificial intelligence that can help to crunch such numbers more quickly during underwriting. It also helps for them to clarify risks for consumers.
There are three main ways that COVID has changed life insurance. Sales for life insurance have increased, the demographic of people who are purchasing life insurance has changed, and the technology has caught up to the increased sales and remote needs of consumers.
It’s important to remember how helpful life insurance can be in a time of crisis. It is no wonder that COVID reminded the public how necessary it is to obtain a policy for their potential medical or even funeral costs.