- Age restrictions for applicants. For people between ages 70 and 80 or older, the choice is much smaller now.
- Rated cases will be declined more. The greater the rating and the older the applicant, the more likely the case will be declined now.
- Jumbo cases will have less available coverage. These cases will need special attention now.
- More delays in processing. Due to remote work and more complicated cases, it takes more time to set up, underwrite, print, and send out.
- New requirements for case submission and policy placement. New questions concerning COVID-19 are asked on points relating to household members, travel by the insured and the insured's family members, contact with others who have been infected with the virus, and general life style issues may be of concern to the carrier now.
- Face to face meeting with clients less likely. It will be a major challenge when an applicant rejects the need for an insurance exam for fear of putting themselves in jeopardy of infection.
- Exam and paramedical vendors are challenged and stressed.
- Difficulty in serving life insurance needs of U.S. citizens stuck in other countries and who can't get back given travel restrictions.
- The market of foreign nationals living in the U.S. are unable to secure as much coverage as they would have been able to obtain before.
- No-exam programs affected. To stimulate more activity, most insurance carriers either relaxed their non-exam programs or quickly rolled out new programs that had been in development for years.
COVID-19 has changed life insurance risk underwriting profoundly, specifically, in the following areas:
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