The Life Insurance Conversation During COVID-19

We’re guessing on this, but has life insurance come up in conversation a bit more this year? The pandemic has brought the fragility of life top of mind. People here in the Utica area…and throughout the world…realize now more than ever how important all of us are to each other.

That means husbands and wives, brothers and sisters, friends, and fellow community members. We are all connected. And in many ways rely on each other in so many ways.

This is especially true in the homes of working fathers and mothers. Not only do they lead their families but they also generate their basic income. With the changing dynamics of corporate benefits coupled with layoffs and pandemic generated furloughs, we wondered what people were thinking when it came to life insurance.

We found that consumers are looking at life insurance differently than they have in the past. For one thing, fewer people own life insurance policies now than they used to. Which seemed odd to us since premiums have never been lower for permanent and term life insurance.

What’s up?

Turns out the top reason for the decline in life insurance ownership is that fewer employers are paying for group coverage. The result is that, though fewer people own life insurance in general, individual life insurance ownership is up. Studies put the stats from 40% individual ownership in 2011 to 55% in 2020.

So your parents could rely on their employers for at least some basic life insurance coverage. But it’s now up to you to get what you need on your own.

Another trend we’ve seen is that online purchases of life insurance have increased. From 17% in 2011 to 29% in 2020. This is where we consider ourselves a better alternative. Even if our life insurance clients have done their research online, they know they can come to us for face-to-face service. We’ll answer their questions, advise as to the right amount, and quote the policy quickly and personally.

Why Buy Life Insurance?

Life insurance may seem complicated, but its basic idea is quite simple. If you die, a beneficiary that you designate gets the insured amount. That’s really all there is to it.

And it’ a big deal, for example, if others rely on your income. If you earn $50,000 per year, a $500,000 dollar policy would provide that amount for 10 years. That doesn’t include income earned on the death benefit. Because at death your beneficiaries receive a check for the total amount.

But you might say that sounds expensive. Just go online and see some of the pricing available in today’s marketplace. Amazingly inexpensive.

And a quick tip: premiums are much less the younger you are. That’s because the chance that you’ll live a long life are so much better. Plus, you’re probably healthier. So we suggest purchasing life insurance when you’re young. (By the way, surveys show that 40% of people who own life insurance wish they had purchased policies at a younger age.)

So go ahead and do your research online. But then call us for a quote. We represent A-rated insurance companies who provide the best pricing and will be there when you need them.

If the life insurance conversation has happened in your house, feel free to call us with your questions today.

Until next time,
Your SZW Team

SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here. In Westchester County call Zak Scalzo at 914.246.0315 or email at zaks@szwinsurance.com.