The Evolution of Life Insurance in 2020
COVID-19 has reshaped the way we live, think and plan for the future. Because of this, many people are refocusing their priorities making life insurance now top of mind. According to the Life Insurance Marketing and Research Association’s (LIMRA) September 2020 Facts About Life, 53% of Americans expressed a heightened need for life insurance, as opposed to only 36% of Americans in January 2020, prior to the coronavirus pandemic. As more people become interested in obtaining life insurance and begin to research the various life insurance options, understanding your customer’s needs, budget and priorities will help you find the right coverage for them.
Whole Life Insurance, also known as “permanent” or “traditional” life insurance, provides coverage for the life of the insured, offers long-term, dependable protection, and may contain a savings component in which cash value accumulates each year. Insureds can use the available cash value as a loan but this will decrease the death benefit of that policy.
With Term Life Insurance, insureds can purchase coverage for a set number of years and for the length that suits their needs – the average is anywhere between 10-30 years. If they pass away while the policy is in force, a death benefit will be provided to their beneficiary. Term Life policies offer no cash value but typically provide insureds the necessary coverage they need for the least amount of money.
For many people, an important part of having life insurance is utilizing the financial benefits associated with the policy while they’re still living, and this has become even more popular during the pandemic. Living Benefits are policy add-ons that give policyholders that option and offer the flexibility to address future financial needs.
Would you like a FREE Life Insurance Review? If so, give us a call. We can provide you with several options and quotes, with just a 5 minute conversation. HBL Insurance 603-280-4200 or 207-822-9800.
Article shared from our friends at Auto-Owners Life Insurance Company