Hindsight is always 20/20. When a crisis occurs or our health declines, we wish we had purchased life insurance when we were younger. One of the few bright sides in this pandemic is that it’s causing more people to consider their financial plans and health plans sooner. We’re seeing how little we can control in the face of a global health crisis, but one thing we can control is our preparation for next time.
According to this article from The Globe and Mail, life insurance applications rose 70 per cent in February, and haven’t shown signs of decreasing anytime soon.
These applications have been substantially for term life insurance in which the policy has a set term and fixed payout. Term life insurance provides financial support to your dependents if you pass away. It’s easy to see why this product has become so popular during the current health pandemic.
Why is it so beneficial to buy life insurance right now?
Insurance companies haven’t raised their premiums for term life insurance as of late, but they could in the future. Interest rates have been low since the start of the year and they aren’t anticipated to increase drastically anytime soon. From a cost perspective, this is an incredibly affordable time to purchase term life insurance.
Then there’s the fact that so many Canadian companies have had to do layoffs. Some of these employees could have temporarily or completely lost their benefits packages or a good portion of them. It makes sense for these employees to compensate for their decreased coverage with a personal policy while it’s affordable.
Insurance companies have made huge changes to adapt to the social distancing protocols in place. Not only has this improved the safety of all parties, but it’s led to an increase in applications and interest in buying insurance. Customers can complete the entire application process from home through video meetings, e-signature tools, and waived or modified health exams.
Despite the easier access to applying for life insurance and the low interest rates, it’s still recommended to purchase a policy with premiums within your means. It’s common for customers to get policies that cover 10 times their salary plus other debts including their mortgage. However, the priority should be ensuring your monthly or annual premiums are affordable and feasible for you. Our team at MiLife can help you find the right life insurance product for you at the right price. We’ll guide you through the application and underwriting process to ensure you’re completely taken care of. Sleep easy knowing that you and your family is protected because Life is Full of Possibilities. Get a quote for life insurance today.