How Much Did the Pandemic Impact Insurance Needs?

insurance concept

Buying insurance is now at the top of everybody’s list. It took a global pandemic to push people to do that, but that’s better than nothing. People are thinking about the financial security of their families—and rightfully so. A survey back in May 2020 showed that 67% of Americans reviewed their finances because of the pandemic, while 30% said that the main topic in their household was life insurance.

For insurance companies and agents, this means a bigger market to target. But it also means tougher competition because companies are going to scramble given that the majority of people have finally realized that they need either health or life insurance. For that, agents and companies have to invest in sound insurance marketing campaigns that will take their organizations to the top of the list.

Yes, It Took a Pandemic

It is unfortunate that a global pandemic must happen to remind people that they need insurance coverage. Insurance should not be an option but a must for every family. The pandemic reminded people that everyone is just one accident or a pandemic away from needing insurance coverage. What will happen to your family if something happens to you? How will your kids attend school if you’re no longer there to work for them?

A lot of people are putting off buying insurance for years because they didn’t think they need it. They also do not save enough to pay for the insurance. Because people are so consumed with a lot of things—social media, careers, and relationships—they never had the time to sit down and think about their finances and their futures.

Then, the pandemic happened. Suddenly, they were forced to think about what would happen to their families if they got the virus and did not survive. How much do they have in their emergency fund? Not much. A majority of retirees in the United States do not have enough saved for their retirement. That’s why a lot of them are still working beyond their retirement ages. But the coronavirus is more dangerous to senior citizens, so the lockdowns were a real problem for retirees.

Millennials also cannot and do not save enough. Things have changed now. Most millennials are still living with their parents or in a studio-type apartment. While they have a lot of opportunities to earn on the side because of the internet, they also cannot save enough for a down payment for a house. The market isn’t like before when a blue-collar job can afford a house. Today, even those with good-paying jobs are having a hard time affording their rent and paying for insurance.

The Best Time to Buy Is Now

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Still, the best time to look for an insurance coverage that fits your needs is now. The pandemic should have woken you up to that fact. Some companies are already starting to raise their prices, so it’s best to lock in the coverage you think fits your budget right now. Get a good rate before things start to really increase.

Most insurance companies will still require the policyholder to undergo a medical exam. Some won’t. The medical exam will give the insurer more information about the risk it takes by insuring you. If you are confident about your health, choose an insurance coverage with a medical exam requirement. The agency will offer a better deal. But since it’s still a pandemic, many insurance companies decided to use electronic health records and prescription databases as substitutes.

They also digitalized the whole insurance-buying process. Forget about meeting in person and having the insurance agent present to the client. Not only is that cumbersome, but it also lengthens what should have been a more concise process. Buying insurance is less complex now because companies made it similar to buying from a retail store. You can “add to cart” the type of insurance you want, and an agent will contact you for additional details. That’s it.

The important thing to remember about buying insurance during a pandemic is the need for it. This isn’t something that insurance brokers should break their backs trying to win you. Insurance is for the family. The only thing you have to do is choose the right policy and the insurance company to trust.

The pandemic changed the way people see insurance coverage. It was, for many, a cumbersome expense they couldn’t see the need for in the past. But today, people are clamoring to have an insurance policy—whether life or health—to protect themselves and their families.

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