The importance of life insurance has never been put to highlight today more than ever. The COVID-19 pandemic has made many people look at their financial status with more seriousness and examine how financially secure they are. With numerous people losing their jobs, businesses, and the worst—lives, life insurance now is making a lot more sense than it did in the past years.
Panic Buying During a Pandemic
In a report, Americans are ‘panic buying’ life insurance, bringing a high amount of traffic to insurance brokers’ websites. It is as if life insurance is having a ‘born-again’ moment induced by this pandemic. This only proves that this global crisis had become a wake-up call for people to see life insurance as a top priority in their wealth protection. Although a piece of good news, this pandemic should not determine why people must get insured.
In the past years, life insurance sales had been shrinking. But then came COVID-19, sales in life insurance policies have doubled for many firms. And this is mostly brought by the fear of dying from the said disease and leaving their loved ones with nothing.
Does the Pandemic Make Applying for a Life Insurance Harder Now?
Issuance of the policy can take longer than usual and cost more if you have been infected with the COVID-19 virus or have traveled to places where the infection is widely spread. Some firms have halted selling insurance to customers aged 80 and up.
On the contrary, if you do not fall into these categories, it is much easier to avail yourself of life insurance today because most firms will not require on-site medical exams anymore due to the social distancing protocols. This is also why more and more people are applying for an insurance policy through the internet.
As a matter of fact, according to Jennifer Fitzgerald of Policygenius, there had been an incredible rise in the number of people looking up life insurance on Google search since the spike of the pandemic.
Do You Need It?
With or without the pandemic, life insurance is something you should consider when financial planning. But do it only if you require it. How would you know you need it? It is so simple.
Ask yourself this question: If you pass away, will there be a financial struggle for your family? If your answer is yes, then, without a doubt, you must get life insurance.
While it is great to get everyone in the family insured, that is not really necessary, especially if you are concerned about paying monthly premiums. You can prioritize the persons who need it the most in the family—these are mostly the parents. If both parents provide income, it is best to get each life insurance. If paying for two premiums a month is still a struggle for the family, avail only one, and it must be for the one who provides income the most.
Keep in mind that life insurance is not cheap and, most of the time, a long-term commitment. Pick the right priorities. Otherwise, it can result in the exact opposite of protecting your wealth, which is to drag you into a debt hole.
When Should You Not Avail a Life Insurance?
Two things to keep in mind when deciding on whether you need to get your life insured or not:
1. If you think you have built enough wealth to support your kids until they finish school and your partner until they are old, then do not avail it.
2. If no one is financially dependent on you, there is no point in getting one.
If you are single and do not have any kids, you still have to consider applying for a life insurance policy only if you want to care for and support your parents until their old age.
Whatever your purpose of getting life insurance during this time of the pandemic, you should understand that you are getting it so that the quality of life you built for your family will remain the same when you pass away. It is hard to put your family in the tragedy of losing a loved one on top of a financial loss, so you should take better care of them.
Getting life insurance today is a wise move, especially if it is for the breadwinners of your home. It is giving yourself and your family the gift of peace of mind, not only during these uncertain times but for a lifetime. Take the necessary steps to secure your and their future.