How the pandemic is fueling the insurance market: MDRT


What would you like to know

  • Amid the ongoing pandemic, Americans have dramatically changed their approach to insurance and are preparing for the worst.
  • Among respondents who have purchased new insurance policies since March 2020, 42% cited the pandemic as a factor in their decision.
  • Most participants underestimated the chances that they would eventually need long-term care.

While the pandemic shows no signs of slowing down, a new study from MDRT, an association of life insurance and financial services professionals, finds that American consumers have dramatically changed their approach to insurance and are preparing for the worst.

Among study participants who have purchased new insurance policies since March 2020, 42% cited the pandemic as a factor in their decision, higher than any other option. And 51% of those participants said it was the main factor in their decision.

Respondents indicated other reasons for acquiring new policies, including a desire to support the family, a major life event, and new personal concerns about possible future disability or disability needs. long-term care.

Among study participants with a financial advisor, 55% said the pandemic was their main reason for acquiring a new policy, 43% cited marriage, divorce or a new child, 39% said they wanted to support their families after they died and 29% had new concerns about personal disability or long-term care.

Among those who do not have an advisor, 39% said their main reason for acquiring new coverage was the pandemic, 34% said they wanted to support their family after they died, 21% cited new problems of personal or long-term care disability and 16% reported marriage, divorce or new child.

G&S Business Communications conducted the online survey on July 23 with a representative US sample of 1,051 adults. According to MDRT, the survey was conducted before updated mask-wearing guidelines for those vaccinated were announced by the Centers for Disease Control and Prevention. It was also conducted before the Department of Health and Human Services announced that the long COVID can be considered a disability under the Americans with Disabilities Act.

More and more anxious

Fifty-four percent of participants said the pandemic made them more anxious about dying early, becoming disabled, or needing long-term care, including 21% who said the pandemic had them made much more anxious.

Sixty-one percent of people with dependents at home expressed increased anxiety about dying prematurely, becoming disabled, or needing long-term care, compared with 50% without dependents at home .

Thirty-eight percent said the pandemic had not made them more anxious about the possibility of premature death, disability or needing long-term care. Eight percent claimed to have become less anxious.

Underestimate the need

As the so-called long-term COVID becomes a growing effect of the pandemic, 69% of survey participants underestimated the chances of a 20-year-old acquiring long-term disability before retirement. Only 20% answered correctly that one trimester of today’s 20-year-olds acquire long-term disability before retirement.

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