Many Americans shop around for life insurance covers but lose interest in buying one if local COVID-19 cases decline according to a new survey.
The survey conducted by NerdWallet and published on https://theeagle.com/ revealed that more than a third (35%) of those who considered purchasing life insurance due to the pandemic — but ultimately didn’t buy — say they decided against it because COVID-19 cases in their area started going down.
Lakenan Insurance Brokers vice president of financial services Grant Dunn said this behaviour suggests some people view life insurance as a “panic purchase”.
He said, “That’s not what life insurance is made to do. It is not meant to protect people for the next six months while COVID-19 cases are high in their area. It is meant to protect the family during all of your income-earning years and beyond.”
Conducted online by The Harris Poll, NerdWallet’s survey asked US adults who considered buying life insurance due to the pandemic, but ultimately chose not to, why they decided against it.
The survey findings revealed that 25% of the respondents say insurance cover is too expensive and 24% felt that their workplace coverage was sufficient.
More than one third lost interest in buying the coverage because COVID-19 cases in their area started going down.
In the survey, 17% of the respondent who considered buying life insurance due to the pandemic but decided against it said it is because they don’t understand how it works and 14% said they didn’t know where to start.