Purchasing life insurance became a priority for many in response to COVID-19.
Many people under age 44 do not see a need to purchase life insurance.
They consider themselves to be young, healthy, and at low risk of death.
In the last few years, this age demographic had submitted a relatively low volume of life insurance applications.
Few young people considered their own mortality.
According to a recent NBC News article titled “Americans flocked to buy life insurance, prepare wills and trusts last year,” this trend shifted significantly in 2020.
The MIB Group shares data from insurance companies and reported an increase of more than 7 percent in life insurance applications for this age group.
For many, young and old, the news surrounding COVID-19 reminded them of their own mortality and the limits of their own control.
Another reason for the increase in life insurance applications may be the loss of a job as due to COVID-19-related downsizing.
Those who previously had insurance through an employer turned to private policies.
The increase in life insurance applications was not limited to those under age 44.
Applications increased by 4 percent overall in 2020.
It is impossible to deny the connection between the numbers and COVID-19.
Between April and September, Northwestern Mutual alone sold 15 percent more policies than the same months the previous year.
As people prepared for the possibility of death from COVID-19, estate planning also became more popular.
According to a recent LegalZoom survey, 32 percent of individuals ages 18-34 created a last will and testament in response to COVID-19.
Of these willmakers, 21 percent reported doing so because they knew someone who contracted the virus.
Although COVID-19 certainly reminded people of the importance of estate planning and incapacity planning, protecting your loved ones should be a priority regardless whether there is a pandemic in play.
Reference: NBC News (Jan. 1, 2021) “Americans flocked to buy life insurance, prepare wills and trusts last year”