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Can you still purchase life insurance during this period of uncertainty?

Gregory L. Hoernschemeyer, CLU
Senior Vice President, Registered Representative

The panic shopping for food, water and toilet paper doesn’t just stop with consumer staples. With the widespread fears about infections, company shutdowns and quarantines, many Americans are getting their financial matters in order.

Many life insurance companies we partner with have seen a 50% increase in applications since mid-February. People are concerned with ways to protect their families in this time of uncertainty. The life insurance product is not as important as just having coverage in place. An inexpensive term policy can create a very suitable financial safety net, and permanent cash value life insurance can provide some downside protection with market volatility.

The traditional life insurance application process can take several weeks to complete.  There is typically a lengthy application, a life insurance medical exam and time for the life insurance company to receive and review doctors’ medical records and verify information about you. Many life insurance companies use this underwriting process today.

Today, many life insurance companies are offering accelerated underwriting options that offer speedy alternatives. For qualified individuals, the new underwriting process will be far less onerous in terms of exams and lab work because streamlined underwriting relies on medical records and potentially no blood tests or medical exam. The “fast” insurance options using accelerated underwriting can take less than 30 minutes and require no face to face meeting with the insurance representative and exam facility.

If the current crisis has compelled you to get life insurance, that’s not necessarily a bad thing. Often life insurance shopping sits at the bottom of the to-do list. The problem is you’re not getting any younger and you might run into an unexpected health issue later. It is important to lock these things in now. 

Don’t find yourself panic shopping for life insurance, know that HORAN is here to answer any questions you have on existing coverage and provide valuable advice on shopping the insurance marketplace.

Tips To Consider:

  • Consider a policy review/update of current life insurance to make sure policy is up to date.
  • Stress test current cash value life insurance to understand how market changes may affect your policy.
  • Understand provisions of any term life insurance policy (expiration date of coverage & convertibility options).
  • Life insurance is available for purchase, COVID-19 has not shut down the sale of life insurance.