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The COVID-19 Impact on Life Insurance

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Contributed by Gregory Hoernschemeyer, CLU

Many of our carrier partners have a full suite of electronic capabilities from online applications and accelerated underwriting to electronic policy delivery.  This means that we can help you with your insurance needs from anywhere.  Automated underwriting was introduced before COVID-19 and has been fine-tuned over time.  It may be a great option for you when social distancing is taking place and you want to take action to provide for your family or business.

Can you get life insurance faster with accelerated underwriting?

If you just want to get life insurance coverage, you should consider accelerated underwriting. This can bring the underwriting process down to a couple of weeks – or, in some cases, a couple of days. Life insurers do this by using readily available data instead of medical records and exam results, which can take a long time to retrieve and review.

How does accelerated underwriting work?

  • The underwriting process is a health assessment that helps set the cost of your life insurance
  • Accelerated underwriting uses available data rather than relying on medical exam results
  • Not everyone will be eligible for accelerated underwriting based on health and other factors

If you meet the following guidelines, accelerated underwriting may be a good option.

  • Ages 20-65
  • Death benefits less than $5,000,000
  • Most products are available including term insurance and permanent insurance
  • Underwriting rates classes range from Standard to Preferred Plus Non-Tobacco
  • No medical exam, labs, APS requirements
  • Primary residence in a state other than NY
  • Must be a U.S. Citizen
  • In good health

How is “good health” defined by insurance companies?

Some medical impairments and lifestyle considerations could disqualify you from automated underwriting or “bump” you into traditional underwriting.  If you are “bumped” out of automated underwriting, you may need to complete a Paramedical Exam, lab work and medical records may be requested. Please contact HORAN for details regarding these and request a pre-qualification questionnaire.

Contact HORAN at 513.745.0707 to discuss your specific situation and let us know how we can help.