We, at Asurea, urge you to follow through with securing Life Insurance before COVID19 drives up your rates, or upends your eligibility altogether. First, the good news. Right now, for this quickly closing window in time, Life Insurance rates remain at their pre-COVID19 levels.
But a number of things are likely to happen as insurers calculate the pandemic’s impact on risk and mortality rates derived from the data. And as we all see when the daily death counts and infection rates hit us like flash floods, the numbers are not good. Let’s consider the changes to Life Insurance that COVID19 will likely unleash.
First, let’s solve the mystery of how insurers calculate risk, and therefore rates. The process is largely one of statistical analysis of data sets. And when it comes to data sets revealing probable outcomes, the larger the data set, the more likely the accuracy. Length of time, follows suit. The mathematicians who spend their careers working this process are called actuaries.
And a global pandemic is every actuary’s career nightmare. Unknowns are the enemy of statistical accuracy. COVID19 has ushered in the Era of Unknowns. Consider how an actuary’s calculations are impacted by ever-changing data, unreliable infection and death reports from certain countries, inaccurate and incomplete data due to testing shortages, and the virus’ short Timeline.
“In an unfolding epidemic, it can be misleading to look at the naïve estimate of deaths so far divided by cases so far,” said Christl Donnelly, a disease specialist at Oxford University and Imperial College London. “This is due to the delay from the time it takes for individuals to progress from being diagnosed as cases to dying.”
COVID19’s likely Life Insurance impact will be threefold.
- Rates will probably increase.
- More people will likely be declined altogether.
- Medical testing and screening will probably grow increasingly rigorous and extensive, which, in turn, will almost certainly lengthen the application process.
In sum, we at Asurea urge you to follow through with securing Life Insurance before COVID19 drives up your rates, or upends your eligibility altogether. .
The pandemic is here; call Asurea now.