Has COIVD Impacted the Price of Life Insurance?
December 9, 2020
The coronavirus pandemic has impacted nearly every facet of our lives this year. One industry that, surprisingly, hasn’t seen noticeable disruption is the life insurance industry.
A new study looking at how the pandemic has changed the availability of life insurance policies and the cost premiums found that there was “limited evidence” of any changes. The researchers, working jointly from the University of Kentucky and Illinois State University, examined more than 800,000 policy quotes from more than 100 companies between 2014 and October 2020.
They did notice a drop in policies being offered to people over the age of 75 beginning in the summer, but the cost of premiums did not substantially increase. The results surprised the researchers, who note the changes that auto insurance providers offered policyholders recognizing that people were on the road much less. However, one researcher concluded that for the life insurance industry, the coronavirus has not been a game-changer.