MONDAY, MAY 15, 2017

The average American family is under-insured by over $200,000. While millennials are more inclined towards purchasing insurance, a majority of people do not have life insurance on their priority list. There are numerous reasons why there has been a decline in the number of families owning life insurance policies, including changing market dynamics, introduction of new technology, and changes in regulation.
The process of obtaining life insurance has also changed, right from filling the forms to the time it takes for the policy to kick in. The state of the economy has also effected people’s perception towards life insurance.
Keeping the aforementioned factors in mind, here is a look at 5 key life insurance trends you must know about:
#1 The Medical Marijuana Factor
Over the past few years, several states across the US have legalized marijuana for medical and recreational use. Insurance companies have updated their regulations to account for people who smoke medical marijuana for medicinal purposes, and they will not be rated, unlike cigarette smokers.
Smokers have to pay more for life insurance, but if you smoke medical marijuana, it will be considered similar to any other prescription medication you might use. That being said, it is important that you inform the insurance company about your medical marijuana use when applying for life insurance.
#2 No Medical Exam
Previously, people who opted for life insurance without a medical exam had to pay a 20% to 50% higher premium. However, that is a thing of the past, as an increasing number of companies are embracing a no medical exam required policy for policies valued under half a million dollars. There may be some time before this is introduced across the board but customers can expect to obtain life insurance with no medical exam quicker than before and without having to pay extra.
#3 Early Cash Out
Customers with a terminal illness will be able to cash out their life insurance policy, up to 75% of the insured amount, while they are alive. In case of a chronic illness, the customer will be able to use up to 90% of the amount (conditions apply).
This means that customers can now enjoy their life insurance during their lifetime. Perhaps this is a sign that insurance companies are realizing the fact that people live longer now than ever before.
#4 Comprehensive Screening
As mentioned above, insurance companies are willing to do away with a medical exam before granting a policy. However, they are looking at other sources of information for vetting applicants.
In addition to checking standard information, the applicant’s credit report will now also be inspected before a policy is approved. The reason behind this is that insurance companies believe that people who are financially stable tend to live longer, as they can afford better care.
#5 Goodbye to Ageism
Life expectancy has increased over the past few decades. Men can expect to live up to their mid-70s and women even longer than that. What this means is that even older people can apply for and successfully receive life insurance coverage. Seniors who wish to purchase life insurance are advised to work with an experienced insurance agent.
These 5 key trends will determine how customer attitude towards life insurance changes in the time to come. As you can see, most of these make it easier for you to get insured.
Posted 1:31 PM
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