The most important thing to know is that life insurance companies are open for business and are taking applications. In this uncertain time, people are beginning to see that life insurance is an important element of their financial plans. They have been making changes based on feedback from customers to respond to changing demands and problems.

“You can imagine the kind of financial insecurity that people have, staring at these uncertainties,” says John Grogan, Executive Vice President and Chief Product and Innovation Officer at Northwestern Mutual.

The most important thing to know is that life insurance companies are open for business and are taking applications. In this uncertain time, people are beginning to see that life insurance is an important element of their financial plans. They have been making changes based on feedback from customers to respond to changing demands and problems.

“You can imagine the kind of financial insecurity that people have, staring at these uncertainties,” says John Grogan, Executive Vice President and Chief Product and Innovation Officer at Northwestern Mutual.

The most important thing to know is that life insurance companies are open for business and are taking applications. In this uncertain time, people are beginning to see that life insurance is an important element of their financial plans. They have been making changes based on feedback from customers to respond to changing demands and problems.

“You can imagine the kind of financial insecurity that people have, staring at these uncertainties,” says John Grogan, Executive Vice President and Chief Product and Innovation Officer at Northwestern Mutual.

In some cases, you May Not Need a Life Insurance Medical Exam.

Companies that required a life insurance medical exam a few months ago might have alternatives now. For these exams, a paramedical professional typically comes to your house and takes a variety of measurements such as height, weight and blood pressure. Getting blood and urine samples is also a standard part of a life insurance medical exam.

As a substitute now, life insurers will rely more heavily on data. This could include past doctor’s records, prescription data and other types of personal information that they routinely gather.

“Having an exam is not feasible or practical.”- John Grogan of Northwestern Mutual

MassMutual, for example, now has alternatives. “Given the challenges paramedical examiners are facing and customer concerns about COVID-19, MassMutual is offering to substitute information from medical records for the insurance labs/physical measurements in order to continue to offer life and disability income insurance,” says Dr. Jacki Goldstein, Head Medical Director at MassMutual.

Pacific Life says that it may be able to “use alternative data sources” instead of a medical exam when stay-at-home orders prevent an exam.

Northwestern Mutual is also relying more heavily on data. “Having an exam is not feasible or practical,” says Grogan of Northwestern Mutual.  “The process has changed but the standards have not changed. We’re moving from paper, fluids and records to data.”

Depending on the insurance company, alternatives to a medical exam may be less available if you’re seeking a very high coverage amount, you’re older (above age 60, for example) or you have medical conditions.

“If you need to take a medical exam, don’t be discouraged,” says John Latona, General Manager of Haven Life, a digital life insurance agency backed by MassMutual.

“For medically underwritten coverage, which is usually the most affordable type of term life insurance, you often need to take a medical exam,” says Latona. “This exam can usually save you a lot of money over the 10 to 30 years you have a policy. If you find out you need to take a medical exam to finalize your coverage, many life insurance companies will provide eligible applicants with temporary coverage until the exam is taken. That’s real coverage that would be paid out to your loved ones if you died.”

The time frame for completing the exam may also be longer now. Haven Life, for example, is extending the time frame that its applicants must take medical exams, to up to 120 days from the date of the application.

Options for no-exam life insurance policies were growing even before the outbreak of COVID-19. Many life insurers use “accelerated underwriting” for at least some of their applications. This process uses data about the applicants and cuts the approval time down to less than a week or even 24 to 48 hours.

Fast life insurance options, such as those from Manulife, also include instant-approval policies, where providers use algorithms to quickly process term life insurance application information. You Might Get New Application Questions

You Might Get New Application Questions

Have you recently been on a cruise? Have you been in contact with anyone who has been diagnosed with COVID-19? Have you been tested or treated for COVID-19?

You might now see questions like this on your life insurance application.

You might be asked if you have been tested or treated for COVID-19.

Manulife, for example, has started asking whether applicants or their household members have traveled by cruise ship in the last 30 days, and whether applicants have been in close contact with someone who has tested positive for COVID-19.

You might also be asked if you have been tested or treated for COVID-19. Expect a postponement on your application for a certain period if you have.

The important thing is to be honest on all application questions.

“If you’re feeling symptomatic, disclose that proactively,” advises Latona of Haven Life.

As with any other dishonest answer that is discovered later could void your policy. And these types of questions result in a postponement of your application, not a higher rate or outright rejection.

Canada Protection Plan has an excellent FAQ post covering COVID-19 questions here.

Expect Postponements for International Travelers

International travel is understandably a significant concern for life insurers. If you have recently returned from international travel, expect your life insurance application to be postponed for at least 30 days.

If you plan international travel, expect your application to be postponed for at least 30 days after you return.

Expect No-Contact Meetings and Policy Delivery

There should be no need to meet face-to-face with an insurance agent or sign a paper document. Agents can offer advice by phone and video conference. You should be able to do an electronic signature for documents and receive your policies by email.

Look for Financial Strength in a Life Insurance Company

One thing that has not changed is the importance of buying from a company that’s financially strong. Since you will likely have a life insurance policy for many years, a solid company is crucial.

“We’d recommend consumers look for a carrier that has strong, third-party validated financial ratings,” advises Smoot of Guardian Life.

Life insurers will typically have their ratings on their websites, such as ratings from A.M. Best and Standard & Poor’s.

Grogan of Northwestern Mutual notes that his company has customers who have had their policies for 80 years. “If you’re going to hold a product that long, you want to know you’re buying a policy from a company that’s safe and strong and that will be there for your decades for now,” he says.

Grogan recommends working with an advisor who can help you plan and work with you through the process.

“Work with an advisor because COVID-19 is going to pass, but people’s financial goals won’t pass,” he says.

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