Reasons Why It Might Be a Good Time to Invest in Life Insurance

benefits of life insurance

Reasons Why It Might Be a Good Time to Invest in Life Insurance

It’s common for people not to acknowledge they are going to die someday. However, it doesn’t have to be a dreary topic, especially if you care about the future of your family members. Enrolling in life insurance is part of a long-term plan for families to ensure long-term financial security. Here are a few essential reasons to invest in a life insurance policy.

How COVID-19 Made People Consider Life Insurance

About 15% of Americans say they are interested in a life insurance policy due to the impact of COVID-19, according to a recent PwC consumer insurance and retirement survey. High-risk individuals who suffer from pre-existing conditions have accounted for the majority of COVID-19 deaths. Seniors aged 65 and above with weak immune systems have the highest risk of dying from COVID-19.

The fact that the virus and its variants have been deadly should be a wake-up call to families to prepare for the worst and hope for the best. Life insurance pays policyholders who are too ill to work. It further pays family members benefits following the policyholder’s death. There are various types of life insurance policies available, as they can be customized with your insurer.

The PwC survey also found that 37% of respondents are afraid the pandemic can affect their future finances, including retirement plans. This level of concern is somewhat alarming considering how last century Americans typically viewed retirement plans as safe and secure. A 2021 study conducted by LIMRA found that 47% of women vs. 58% of men carry life insurance.

Why Now is a Good Time to Get Life Insurance

Many life insurance agencies refused to offer policies to seniors with pre-existing health conditions once the pandemic broke out. However, after a year into the pandemic, insurers have begun to loosen restrictions on new applicants. At first, insurers delayed approval for individuals who had traveled internationally with a COVID patient. That’s an example of a restriction that has been lifted. Therefore, now is an excellent time for life insurance shoppers since most life insurers have become more flexible about new applicants.

Types of Life Insurance

If you decide to invest in life insurance, be aware of the different types of policies that exist to serve different market segments. Here are the main types of life insurance to consider:

Term Life – This coverage is inexpensive and lasts as long as you want to pay for it. Many people use it as bare minimum coverage to pay for times when they cannot work due to illness or injury. The plan typically pays about 70% of the policyholder’s normal wage.

Whole Life – Individuals who can afford to pay higher premiums and have substantial family assets to protect lean toward this coverage. It works more like an investment account that grows in value over time. Another advantage is a broader range of benefits for survivors.

Other types of life insurance plans include Guaranteed Universal Life, which provides a fixed death benefit, and Final Life Expense, which pays for funeral costs.

If you’re looking for life insurance at the best rates and optimum benefits, contact theĀ Club Agency Insurance Brokerage experts in Garden City, New York, today. Our team is always here to assist you with all your coverage needs.



COVID-19 Update:

At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time. Contact us today!Executive Order for Policyholder Payments