Oncken Insurance Agency, P.C. Blog
Life insurance companies have consistently remained open despite the pandemic and insurers expecting to have consistent expenses. However, other life insurance types, such as term life policies (which provides coverage for a set of years) have a few changes in store.
There has been a change of concerns as the pandemic continues. Because of the currently available information that insurers now have about the virus, companies have changed various aspects of their underwriting process or manage new policyholders’ risks.
Recent Travels Might Pause Your Application
Insurers will need to ask you about your last international travel to ensure and manage safety risks. However, as COVID-19 continues to spread worldwide, it immediately became a question of infection and health risk. Since the start of life insurance, it has always been a standard question. It focuses on risky regions that may be unstable politically or have limited healthcare access.
During the pandemic, life insurance companies started to perceive international travel as a potential health risk. Carriers of life insurance began to postpone applications for those with plans on an upcoming international trip and those with recent global travel history. It was an indicator of high-risk for exposure to COVID-19.
Term Life Policy may be Difficult for People Over 70
Term life policies are often for younger people, especially if they have debt such as a mortgage, or those with families that will undoubtedly need all the financial support once they pass away. Despite the instances where older people can also benefit from term life policies, the effects of COVID-19 has made it difficult for people over 70 to apply.
Applications from people over the age of 70 immediately got denied by several insurance carriers as the media revealed more information about the various mortality rates for different age groups. Plenty of insurance companies made sure that the segment of 70-plus was a higher COVID-19 risk. Because there is still data not yet known, carriers began denying applications for those aged 70 and above.
If you plan on getting life insurance, make sure to discuss the terms with your insurer first. Because qualifications differ from company to company, it might be worthwhile to research which insurance company you plan to partner with.
At Oncken Insurance Agency, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (281) 256-8310 or Click Here to request a free quote.