Whether or not Americans want to talk about the D-word, the Covid-19 pandemic is bringing Death to their doorsteps. Stories of bereft families, like the plight of three orphans in suburban Maryland who lost Mom and Dad in a matter of days, move the threat forward.
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Often for the first time in their lives, people are weighing the value of life insurance.
In 2020, only 54% of U.S. adults are covered by life insurance, down from 63% nine years ago (LIMRA-Life Insurance Marketing and Research Association). Life insurance coverage peaked in 2001 to over 40 million individual policies, up from almost 32 million in 1998. Policy purchases have hovered around the mid- or high-20 million mark since 2006.
Instead of making life insurance easier to purchase when it’s needed the most, the COVID-19 pandemic has slowed the process. With decentralized employees and other challenges, policies typically take up to six weeks for approval, but can extend to waits of several months. Having a life insurance agent in the living room has rarely been a welcome occasion; today it is more tenuous even with masks and social distance. In addition, the pandemic has pushed health professionals and administrative support to the limit, leaving little time for them to conduct the medical exams traditionally required for life insurance acceptance.
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Recognizing the urgent need for faster life insurance coverage, LifeLine Insurance, a new startup launched by a team of veteran insurance leaders, is eliminating medical exam requirements and providing immediate life insurance coverage up to $1 million.
Ordering life insurance on the group’s underwriting application — 4NoExam.com — is like any online shopping. Name, address, and a few questions later, and adults from 21 to 55 can click on their choice of coverage amount ($50,000 to $1,000,000) and policy length (10- or 20-year term).
Algorithms in this disruptive technology platform instantly qualify online applicants and determine a final premium cost. For example, a non-smoking 35-year-old woman can buy a $500,000 ten-year-term life insurance policy for about $20 a month. Upon online submission of the first monthly payment, qualifying clients get instant life insurance from an A+ carrier. Sign-up on 4NoExam.com takes about five minutes; coverage begins before the client logs off.
In a world of medical risk, reducing the barriers to life insurance provides new opportunities for individuals wishing to leave funds for loved ones should the worst occur. Instant life insurance has become a rare source of peace of mind in a time when that commodity is increasingly hard to find.
