Applications for life insurance have jumped in the US this past year as the COVID-19 pandemic has made us more mindful of our own life expectancy.
Application activity has almost doubled this year for Americans 44 and younger, according to research from MIB Group, a data-sharing service for insurance companies.
Most millennials are new at this, so check out the services tab on our website for a brief description of how life insurance works. Let us ease you through the application process, help you put a plan in place to protect your family, and get the most out of your new coverage.
Plan for tomorrow, not today
Many young Americans are still near the beginning of their financial journeys. Careers, purchasing homes, statrting families, and location will likely change over the next 5-10 years, which means, needs and dependants may change as well.
With a variable future, putting your focus toward getting a plan in place now, replacing your income, and paying off your debts - all while keeping in mind growing financial commitments and a growing family is the best approach.
Skip the medical exam while you can
Life insurance applications are notoriously frustrating. Filling out a lengthy application, explaining medications and taking an in-person paramed exam just to find out if you’re approved.
While this process still exists, there is a more simplified way. E-applications and accelerated undrwriting are becoming the new norm. Accelerated underwriting basically consists of pulling your MVR (Motor Vehicle Record), running a prescription report, and checking the MIB (data sharing company for insurance companies). If no red flags appear, the insurance company does not require the in-person exam or blood and urine to be collected like the traditonal method. This process makes life insurance more accessible to more people. Accelerated applications can cut approval times down from weeks to hours, with no medical exam required.
*An in-person exam may still be required, but definatley worth a shot to take advantage of accelerated underwriting if eligible.
Don't assume life insurance is expensive
Buying while you are young and healthy can help you save money on life insurance and lock-in protection for your family. The older you are, the more risk the insurance company takes on and the more expensive premiums will be.
Many people underestimate the value of buying life insurance while they are young and healthy. Research by LIMRA (Life Insurance and Market Research Association) shows that half of millennials overestimate the cost of coverage. Roughly 50% own life insurance, with 80% recognizing they need it, according to LIMRA.
The 2020 pandemic is providing new motivation for this generation. This past October, nearly 1 in 3 millennials said they feel an increased need for life insurance due to COVID-19, according to LIMRA.
Reach out to us to help navigate how much coverage you need and for how long you need it. Think about your family and the pople that depend on you - How much money would they need to pay off the house? How many years will your salary need to be replaced?
Finances can be complicated, so working with a financial professional can assist in tailoring a plan specifically for you and your families needs. We will guide you through the entire process.