COVID-19 has caused a whirlwind of effects on people’s lives in a magnitude of ways. Life insurance is no exception. Various changes to life insurance policies are necessary to cope with the financial strain that people are facing worldwide. You should be aware of some adjustments that the life insurance industry is making and what you can do to help you cope with the impacts of COVID-19 on your insurance policy.
How Insurance is Offered
Life insurance is necessary for many people, especially now. If you are considering obtaining a life insurance policy, you know that a medical examiner is most likely involved. Typically, this is an in-person process. Now, medical examiners are discouraged from visiting people’s homes; likewise, potential insureds do not want strangers in their homes due to COVID concerns. Therefore, some insurance companies are offering policies that do not include a medical examination. This makes it an opportune time to obtain, replace, or reinstate your insurance plan if you need to.
Unclear Future for Policy Rates
If you are already struggling financially, the possible change of rates on your policy is concerning. Many people are worried about the increase in their rates; however, this is still an unknown. The long-term health effects of COVID and the fact that there is no cure are keeping rates stagnant and unprecedented.
The good news is that experts have not expressed any concern for the cost of rates rising…short term at least. Life expectancy and data will determine this as we learn more about the Coronavirus. That being said, do not worry too much about your policy rate just yet.
Struggling with Premium Payments
The biggest impact that we see from COVID-19 on life insurance policies is the ability to pay premiums. People’s finances have been greatly affected, whether it has caused job loss or impacted their retirement portfolio. These are times to consider the financial burden of your premium payments. There are some options when it comes to reconsidering your policy premiums.
If you are having trouble making payments, but still need the coverage, first consider changing your premium payment schedule. Lump-sum expectations are more difficult for some to meet. You can opt for quarterly, annual, or monthly payments. Switching to smaller payments throughout the year allows your policy to stay intact and relieve some of the financial strain.
If you are still having a hard time making your premium payment, but it is short-term, it may also help to know that most insurance policies have a grace period- typically 30 days. Some insurance companies can even extend that time period to help you stay on track.
Selling Your Life Insurance Policy
If continuing your premium payments is still a struggle, and you are considering letting your policy lapse or surrendering it to the insurance company, there is an alternative. A life settlement.
An insurance life settlement is the sale of a life insurance policy for cash. It is an optimal option for those who no longer need their policy, need funds for expenses, and want to eliminate their policy altogether. You can turn the burden of paying premiums into a financial solution by selling your policy on the secondary market.
Your policy is most likely worth more than the surrender value of life insurance companies. That is why you need a policy appraisal to help you determine what your policy is actually worth. Qualified seniors can use the settlement cash to pay medical bills, living expenses, and make large purchases. Many policyholders are unaware of the life settlements market, but it is a solution that can help seniors with COVID related financial impact. Now is the time to get your policy appraised, and look into life insurance settlement options.
Being informed and staying on top of your options is crucial, whether you currently have a policy, or you are considering one. Getting an appraisal regardless of your situation will help you be better prepared for changes and an unprecedented future.
Visit Life Insurance Settlements and give us a call today to learn more about your options.