COVID-19 Driving Insurance Sales Over the Past Year

It should come as no surprise that the COVID-19 pandemic has been one of the biggest, if not the biggest factors driving the insurance market over the last year and a half.

More than half (54%) of Americans said that COVID-19 has made them more anxious about dying early, becoming disabled or needing long-term care (LTC), according to a new survey from the Million Dollar Round Table (MDRT).* Among those surveyed who said they acquired new insurance policies since March 2020, 42% said the COVID-19 pandemic was a factor while other reasons included wanting to provide for their family (36%), a major life event (29%) and new concerns about potential future disability or LTC needs (27%).

Having at-home dependents also played a role in how anxious respondents said they are about dying early, becoming disabled or needing long-term care, with 61% of people with at-home dependents saying they are more anxious compared to 50% of respondents without at-home dependents.

Among some of the other survey findings, many respondents said the pandemic motivated them to acquire or maintain insurance policies when they could afford them, and more than 30% said the COVID-19 pandemic has made them feel more driven to acquire or maintain life, disability and LTC insurance. Also, people with at-home dependents are more likely to have acquired or maintained life, health, disability and LTC insurance than those without at-home dependents. Of those who said the acquired at least one new policy since March 202, more than half had dependents at home compared to 23% of those without dependents at home. MDRT does point out that that could be more a reflection of the employment situation for many in 2020 rather than proactive financial planning.

*It is important to note the survey was conducted in late July 2021 of 1,051 adults prior to the Centers for Disease Control and Prevention updating its mask guidelines for vaccinated people.

MDRT is a global, independent association of the world’s leading life insurance and financial services professionals from more than 500 companies in 70 nations and territories. For more on MRDT and its latest survey, click here.

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