COVID-19's Impact on the Insurance Industry

With COVID-19 affecting almost every industry and part of our everyday life; we’ve all had to make changes to our daily lives.

It doesn’t come as a surprise that the insurance industry has also evolved. We are all well aware life insurance replaces the loss of earned and social security income to the surviving spouse. Yet did you know it also has many living benefits such as protecting assets and income from taxation? A properly designed policy can create growth in cash value.  This life insurance policy and cash value is Triple Tax Protected ™, meaning you’re protected from taxes on the growth, protected from tax on income distributions, and your heirs are protected from inheriting unpaid income taxes. ¹ Many find the ability to access the cash value younger than age 59 ^1/2 an important emergency access feature that is precious during uncertain times like these. 

Here's an upside of the pandemic, many insurance companies have adopted easier ways of securing a policy. 

Impact #1: Increase in Technology   

Given that keeping a distance is essential, insurance companies have adopted technological avenues for things that previously may have been done in person. For example, many health insurance providers are covering telehealth services for doctor appointments, counseling services and more. ² Some like insurance policies are waiving the medical exam requirement and are opting to take a look at an individual's data instead. 

In addition, e-applications, e-policy delivery and other technological innovations are being implemented more frequently across the board in states such a Colorado, Texas, and Arizona. 

Impact #2: Greater Accessibility 

With more technology, connecting with and finding insurance policies becomes easier and a qualified professional can help make sense of it all. 

Impact #3: Security is in Question 

Some have pointed to an increase in the safety of information due to the possibility of insurance providers implementing cybersecurity measures. ² On the other hand, however, COVID-19 seems to have set off a tidal wave of scammers across all industries, including the insurance industry and, more specifically, the health care industry. Consumer-facing scams and fraud have been on the rise and are preying on the fear of many individuals and families. 

Life Insurance is a very powerful tax strategy and if you'd like to learn more lets have a conversation.

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