While we read about increases in purchases of toilet paper and hand sanitizer during the pandemic, another growth area we’ve seen is the sale of new life insurance policies. According to insurance industry researcher Limra, sales of life insurance policies were up about 11% in the first quarter of 2021 compared with the same period in 2020. Much of this has been attributed to the number of deaths we’ve seen from COVID.
Data from various sources indicate that only 50-55% of Americans have a life insurance policy in force on themselves currently. This leaves a lot of upside, and the pandemic clearly ignited an interest in a number of Americans who were either uninsured or underinsured.
Millennials purchasing life insurance
One trend that has emerged is the uptick in millennials purchasing life insurance. According to MIB Group’s Life Index, applications for new life insurance policies increased 8% year-over-year in 2020 among those under age 44.
According to Limra, 45% of millennials have indicated that they are more likely to purchase life insurance due to COVID. The growth of the millennial segment has contributed to the growth of digitization of the life insurance application process among many large insurers and has sparked a growth in online life insurers as well. Millennials are used to doing business this way and this will likely be the wave of the future in the life insurance business.
While the current trend in life insurance may be an outgrowth of the pandemic, many experts see the trend towards increasing interest in life insurance continuing after the impact of COVID has faded. This is especially true among younger buyers. The advent of improved technology will aid this process. For example, with new technology the days of having a medical examiner come to your home or office to do an in person medical exam can be eliminated with the new technology available to companies.
Insurance and annuity options via Wedbush
Wedbush Securities provides the individual investor a wide array of services and investment vehicles to deal with today’s complex financial environment. From the parent planning for education expenses to the mature investor living on a fixed income, our clients receive the individualized attention of experienced investment executives.
Our Financial Advisors are dedicated to providing quality advice by evaluating a range of investment products which are best suited to your individual needs. We offer the following types of insurance and annuity options:
Term Life Insurance
Term life insurance provides death protection for a stated period or term.
Variable universal life insurance can build cash value more than the death benefit.
Whole Life Insurance
Whole life insurance offers level premiums and an accumulation of cash value.
Long-Term Care Insurance
Long-term care insurance covers care typically not covered by health insurance, Medicare or Medicaid.
Universal Life Insurance
Universal life insurance combines the low-cost protection of term with a cash value element like whole life.
Disability Income Insurance
Disability income insurance ensures the beneficiary’s earned income against the risk that disability will make working (and therefore earning) impossible.
A variable annuity offers clients a wide range of investment options. Modern variable annuity products provide the opportunity to protect a future income stream while providing a specific death benefit.
A fixed annuity is designed to pay a set interest rate. Once annuitized, clients receive fixed payments for the term of the contract.
An index annuity earns interest or provides benefits that are linked to an external equity index such as the S&P 500, Dow Jones Industrial Average or NASDAQ.
An immediate annuity is designed to pay owners a determined amount of money on a monthly, quarterly, semi-annual or annual basis. The payout for an immediate annuity can be fixed or variable.
These and other options in the life, disability and long-term care arena can offer significant planning options at all ages. Annuities can provide a solid option for retirement income. Contact your Wedbush Securities advisor for more information on our insurance products and how insurance planning fits into your overall financial planning efforts.
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These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.