Buying Life Insurance During Covid19

In a global health crisis, life insurance can be confusing. Will it still cover you if anything happens? And, is it too late to sign up? 

Online life insurance distribution has seen a 50% increase in applications since February.
There's no certainty that the increase is tied to the virus, but it points to people thinking about life insurance who would have normally put it off. 

1. If you already have life insurance, there's no need to worry
Anyone who already has life insurance doesn't need to worry about their policy — it's already in place, and no virus could change that. If anything should happen to you, your policy will cover it. Nothing will change, and so there's really no need to worry. Even if you're in an affected area, your policy and monthly premiums aren't likely to change — the rate you have is locked in for the entire term of your policy. 

2. Potential price fluctuation makes now a good time to apply
Insurance prices are constantly fluctuating, due to many factors. While life insurance would certainly be impacted by an influx of fatalities, its prices can also vary based on the market and interest rates, which play a big role in how life insurance companies make money through investing. 

Record-low interest rates could pose a threat to the life insurance industry, affecting its investments and ultimately its profitability. But, It is still too early to say just how much it could jolt life insurance prices for consumers, if at all.

Premius are expected to hold steady in the short term, without much change. If you're a healthy young person and you're applying for life insurance, your rates shouldn't be changed due to this Coronavirus. The underwriting process is the same if you apply today as if you were to have applied two months ago. In the long term, anything could happen. But, anyone concerned about a potential future price increase could benefit from applying now.

3. If you're applying, don't lie
Lying on your life insurance application could cost you, and it's not worth risking your policy's validity to save a few dollars. Lies about your health or medical conditions will likely be caught, as life insurers can check medical records, and can go as far as to cancel your coverage.

Many online life insurers also request travel history. It is not tied to the virus. This question predates any of the Coronavirus concerns. The answers to this question are more about the amount of risk posed by traveling, and that certain destinations that are higher risk than others. Lying on the travel history portion, or on any other portion, of your application could constitute as fraud. You're better off telling the truth.

4. If you're applying now, don't forget to shop aroundAs always with life insurance, you'll want to shop around and make sure you're getting the best possible deal. Each insurance company considers your information differently, and companies price your policy depending on your individual risk profile. To avoid paying more than you should each month for your policy, get quotes from several different insurance companies or online life insurance agents. Compare them to find the most coverage for the least money, and you'll find the one that's the best deal for you.