Life Insurance: Pressure on Policy Sustainability
Most people in America—if not the world—bade 2020 good riddance as we moved into a more hopeful 2021 with the promise of vaccines for all. According to John Hopkins University of Medicine Coronavirus Resource Center, as of March 1, 2021, more than 400,000 Americans have died of the COVID-19 virus, with worldwide infections approaching 100 million and worldwide deaths exceeding 2 million. Were people prepared for the possibility their lives could be cut short, leaving survivors to fend for themselves? Completing financial obligations and commitments has been the classic purpose of life insurance; it is the only asset that self-fulfills with cash whenever death occurs.
Life insurance is still the best way to manage the financial contingency of leaving loved ones the means to continue their normal lives, but obtaining the right product to fit the consumer’s particular needs and circumstances has become more of a challenge in the face of some newly developed life insurance products. At the very least, when it comes to the newer indexed-style policies, whether purchased under old or new illustrations rules, buyers are cautioned to request updated in-force illustrations at least every few years to manage and adjust their expectations.