If you’re retired, you have young children, or someone relies on your income, you might be considering purchasing life insurance.
This is a big decision to make. And if you aren’t familiar with the ins and outs of the industry, it can feel even bigger.
Get up to speed on the biggest life insurance trends in 2022 so you’ll know what’s happening and what you should look for.
#1. More Sales
If you’re shopping for life insurance, you aren’t the only one interested in purchasing a premium. Life insurance sales are going up.
According to the American Council of Life Insurers, life insurance beneficiaries received over $90 billion in 2020. This is the highest number life insurance companies have ever paid in a single year. It was a 15.4% increase in payments from 2019 — the largest year-to-year increase seen since the 1918 influenza epidemic.
Google searches for life insurance policies increased 15-30% during 2020. Most large insurance companies saw a 15% jump in sales of life insurance policies. Some experts termed this increase “panic buying” as COVID-19 forced people to face their own mortality.
As the pandemic continued, people became more and more interested in life insurance. One in three consumers say they’re more likely to purchase life insurance because of COVID-19.
#2. Accelerated Underwriting
Typically, it takes between three to six weeks to purchase life insurance. But one of the biggest life insurance trends we’re seeing today is that the buying process is going more quickly. Between getting a quote, filling out an application, and having a medical exam, it can be weeks before you even reach the underwriting process.
During the pandemic, life insurance companies sped up the underwriting process so they could get to all of their customers. Accelerated underwriting relies on automation to expedite your approval. You can purchase a regular term life insurance policy with no need for a medical exam or your medical records. A policy with simplified underwriting has a minimum and maximum death benefit amount.
Many life insurance companies plan to move forward with permanent options for accelerated underwriting. If you’re considering purchasing life insurance in 2022, be ready for the process to move fast — in some cases, even less than 24 hours.
#3. Growth in Indexed UL and Term Life
According to the 2022 Pandemics and Predictions Briefing from LIMRA, both indexed UL and term life will see growth moving forward.
Indexed universal life insurance is permanent. It has a death benefit like other life insurance policies. However, it also has cash value. The cash value component can earn interest during your lifetime through a stock market index. Indexed UL is flexible with a greater return potential, but does not come with guarantees.
Term life insurance gives you coverage at a fixed rate of payments for a certain time. If the policyholder dies during that specified time period, payment of the death benefit is guaranteed. Typically, term life insurance is the most affordable kind of life insurance available.
#4. Reduction in Fixed UL and Variable UL
The 2022 Pandemic and Predictions Briefing also states that fixed UL and variable UL will likely not be as popular in 2022 and 2023.
With fixed UL, you’ll receive flexible premium payments. This type of life insurance should also grow reliably over time — it has good cash value and a fixed interest rate. Fixed UL is low risk for lifetime protection.
Variable UL is a permanent policy with a flexible premium and built-in savings. Variable life has been on the upside over the past few years. LIMRA expects a slowdown of growth due to lower stock market forecasts.
#5. Virtual Meetings
When the COVID-19 pandemic began in March 2020, we all quickly became used to doing business online. The life insurance industry was no different.
Insurance companies began using technology such as video conferencing software and e-signatures to sell policies virtually. This allows advisors to meet with a greater number of people — making it easier for you as a buyer to get on their schedule.
Even though many businesses have returned to in-person meetings, a large number of life insurance companies are still offering remote options, making this a helpful life insurance trend for 2022.
#6. Consumer Confidence
Confidence in the life insurance industry is currently high, with consumers feeling confident about insurance companies, financial advisors, insurance agents, and brokers.
How can you increase your confidence and find an insurance company you trust? Read online reviews to learn more about a company or agent. Ask a friend or family member to suggest someone they’ve had a good experience with. Or speak with a representative and research their background before committing to work together.
We’re here for you
Working with a trustworthy Bankers Life representative can help you choose the right life insurance policy. A Bankers Life representative will be by your side every step of the way helping you navigate the process of figuring out what’s best for you. Learn more about our services here.
