Growing popularity in no-medical-exam life insurance products has had one expected outcome: More life insurance policies with accelerated underwriting options available in the marketplace. For example, Policygenius offered just three accelerated underwriting options in 2020. In 2021, that number more than doubled to seven, and more options will likely be available in 2022.
Additionally, while such policies had historically only been available to applicants who were young and in good health, the competitive market has prompted more widespread availability. Now, applicants across all health classes can get no-medical-exam policies.
While no-medical-exam policies tend to be about the same cost as fully underwritten policies, applicants tend to favor them even when they are more expensive due to the convenience and expedited turnaround time.
Author(s): Nupur Gambhir
Publication Date: April 2022
Publication Site: Reinsurance News, SOA
Smokers and nonsmokers alike saw minor increases in life insurance prices from February to March. The biggest increase in average monthly premiums, of 3.26%, was seen by 25-year-old smokers buying $250,000 in coverage, and only amounts to $1.08 more a month. Most other demographics saw price increases that were less than 1%.
The minor pricing changes shouldn’t have much impact on consumers’ wallets, especially as insurers continue to compete for business. Although people buying life insurance in March may be paying a few cents more on average, most insurers are implementing pricing changes to win business rather than repel it.
Publication Date: 3 Mar 2022
Publication Site: Policygenius
Older U.S. consumers were out shopping for life insurance policies in February.
Application activity for shoppers ages 71 and older was 4.2% higher last month than in February 2021, as the overall level of individual application activity dropped 3.8%, according to MIB.
MIB is a Braintree, Massachusetts-based group that helps life insurers share some of the information used in life insurance underwriting. It uses its own application-checking volume data to provide an early look at life insurance shopping activity.
MIB figures reflect the performance of part of the retirement planning market as well as of the protection life insurance market, because many of the applicants expect to use their policies to provide cash in retirement, or to support long-term care plans.
Author(s): Allison Bell
Publication Date: 10 Mar 2022
Publication Site: Think Advisor