The Pandemic Boosted Life Insurance Sales, But for How Long?
June 1, 2021 by Sam J. Friedman and Michelle Canaan
It’s not surprising that the COVID-19 outbreak spurred a significant boost in life insurance activity. Fear has always been a prime factor in life policy sales, and concern about the potential for infection, severe illness, and possible death has certainly been prevalent during the pandemic.
MIB’s Life Index shows U.S. applications rose by 4% in 2020, the biggest full-year increase in the last decade, bolstered by a 14.1% spike in July and a 7.6% jump in October. This growth trend has continued into 2021, according to MIB, with applications up overall by 10.1% for the first quarter and 18.5% in March over the same month in 2020, when the pandemic first hit the U.S. market.