TAMPA, Fla. – Insurance agents say they've seen an increase in policyholders amid the pandemic.
What You Need To Know
- More Americans are getting life insurance amid the pandemic
- Experts say some prospects are wondering if they could be denied if they are unvaccinated
- Many Americans are underinsured, according to experts
According to the Life Insurance Marketing and Research Association, three out five Americans are currently without life insurance.
Experts say there is a heightened awareness of the importance of life insurance.
Prospects are now questioning will their premiums go up and could someone be denied insurance if they are unvaccinated.
"They are the most relevant questions to be asking," financial advisor Yolanda Goodwin said.
Goodwin has been correcting misinformation about life insurance.
#Today Getting answers to F.A.Q on Life Insurance. Agents seeing ⬆️policyholders since the pandemic. 3/5 ppl underinsured.— Fadia Mayté Patterson M.S. (@FadiaTVNews) September 12, 2021
🔘Will premium go up?
🔘Can you be denied insurance if unvaxed?
-Plus @LIMRA Study : 56% AA got LI in 2020@BN9
"What people don't realize is that the process for getting life insurance hasn't changed," she said.
Goodwin says insurers are still rating the health of prospects and whether they are using tobacco.
Comorbities like diabetes, hypertension and psychiatric disorders are also considered.
"I have lots of people who had COVID who are insured today," Goodwin said.
When it comes to the unvaccinated and their benefits, Goodwin says its all in the fine print.
"There is no language about this particular pandemic vaccine," Goodwin said.
Though Life insurance companies can charge higher premiums based on risk factors.
"About 60% of Americans are massively underinsured," financial advisor Lawrence Parker said.
That is quickly improving since COVID-19 especially among people of color, according to Parker.
According to the COVID Tracking Project, African-Americans have died at 1.4 times the rate of their white counterparts.
In 2020, 56% of African-American purchased life Insurance policies, according to the Life Insurance Marketing and Research Association.
"The pandemic increased the awareness and it also increased the level of black people taking action," Goodwin said.
Goodwin says getting started sooner rather than later will help you save money.
"You don't need to talk to someone about your money unless you can take them to court," Parker said.
Parker suggests taking the time to research and get advice from a qualified financial advisor.
"Go find somebody who has a fiduciary responsibility and who has a federal license. As a fiduciary, I have the ability to get sued for making bad financial decisions for my clients," Parker said.