4 things to know about life insurance during a global health crisis - Business Insider

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Largely, the same rules apply that always have

reports that online life insurance agency LifeQuotes has seen a 29% increase in application since January 20.

While Kade says there's no certainty that the increase is tied to the virus, she suspects it's gotten people thinking about life insurance who would have normally put it off. "It's scary, but also a good excuse to do something that even when the panic abates, you'll be glad you'll have done," Kade said. Anyone who already has life insurance doesn't need to worry about their policy — it's already in place, and no virus could change that.

If anything should happen to you, your policy will cover it. Nothing will change, and so there's really no need to worry. Even if you're in an affected area, your policy and monthly premiums aren't likely to change — the rate you have is locked in for the entire term of your policy. Insurance prices are constantly fluctuating, due to many factors.

Kade expects prices to hold steady in the short term, without much change. "If you're a healthy young person and you're applying for life insurance, your rates shouldn't be changed due to this Coronavirus," she said. "The underwriting process is the same if you apply today as if you were to have applied two months ago."

In the long term, anything could happen. But, anyone concerned about a potential future price increase could benefit from applying now.Lying on your life insurance application could cost you, and it's not worth risking your policy's validity to save a few dollars.

 

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