Consumers Will Soon Pay Higher Life Insurance Rates

Wheeling, IL, April 01, 2020 --(PR.com)-- COVID-19 has interrupted every part of life globally, and life insurance is no exception. A pandemic of this magnitude will undoubtedly result in a heightened awareness of mortality. In the life insurance arena, this has translated into a surge in demand for coverage.

For many consumers COVID-19 has been the motivation needed to obtain coverage for the first time; however, for those that currently own coverage, there’s been a race to ensure they have enough.

While pre-COVID-19 life insurance pricing in most cases, is still available, the slip in the bond market has resulted in a sharp decline in revenue for insurers. Life insurance rates are driven by not only the risk of death, but also the ability of the life insurance company to invest premiums. Consequently, insurers will need to mitigate losses with increased rates that will be passed onto the consumer. For those consumers who fall into higher risk classes, the increase in rates can mean the difference in obtaining the proper amount of coverage versus being woefully underinsured.

According to Byron Udell, owner and CEO of Accuquote.com, “At least 6 major life insurance companies are raising rates in April, and at least one, possibly more, are going to suspend the issue of certain products at their current pricing. I can’t share the specifics, because they haven’t officially released their price changes to the public, but the increases are coming in just days, or weeks. If you’re looking for more details, we’ve just released a new video with more details.”

Life insurance rates have fallen to record lows over the past two decades, for example, “a $1,000,000, 20-year level term policy for a healthy 40-year old male can be found today for under $600 a year. That’s about 70 percent less than what the same policy cost just 25 years ago,” says Udell. With rate increases on the horizon, many consumers may wonder how to obtain coverage quickly with competitive rates.

There are life insurance companies that issue policies with no medical exam requirement; these types of policies can be approved and issued quickly. In lieu of full exams, insurers may use medical records, prescription drug database screening and motor vehicle records to determine risk and insurability. This process can often be completed instantly or within days, versus weeks and sometimes even months to obtain approval with a paramedical exam.

Udell believes that for some, “Life insurance can be a morbid topic, and as the world grapples with the reality of death, those left behind deserve a stable financial future.”

The folks at AccuQuote.com have been serving customers for over 33 years. With over 200,000 individual clients, and over 100 billion in life insurance placed, AccuQuote is a highly experienced independent online broker that compares dozens of products and can make meaningful recommendations over the phone or online. Contact AccuQuote at 847-442-9899 or via mail at 1400 South Wolf Rd., Bldg. 500, Wheeling, IL 60090.