- Many firms have noted double-digit increases in the number of life insurance policies they’ve sold during the Covid-19 pandemic relative to last year.
- The increase is largely due to a fear of death and greater awareness of financial risks associated with mortality, experts said.
- Insurance sales have been dwindling for years. In 2020, just over half of American adults reported having a life insurance policy, down from 63% a decade earlier.
Life insurance is enjoying something of a renaissance as a result of the coronavirus pandemic.
Consumers, especially younger adults, have been buying insurance in elevated numbers since the spring, when thousands of Americans began getting ill and dying from Covid-19.
That result is logical, experts said, given the core use of life insurance: as a financial backstop in the event of death.
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For example, what if the breadwinner of a family dies unexpectedly from Covid-19? Insurance is meant to plug that immediate gap in household income.
“It’s forced the idea of financial protection and mortality to the top of mind for consumers in a way very few events have,” said Jennifer Fitzgerald, the CEO and co-founder of Policygenius, an online marketplace for life insurance.
Insurance sales have been dwindling for years. In 2020, just over half of American adults reported having a life insurance policy, down from 63% a decade earlier.
But Google Search traffic for “life insurance” jumped 50% between March and May this year compared with the same period in 2019, said Fitzgerald, whose firm gets a large share of business from such internet