Americans Bought Up Life Insurance Throughout the Pandemic

2021’s Big Numbers

As COVID-19 case numbers rose and people lost their lives to the disease, Americans started buying up life insurance. The number of life insurance policies sold last year rose by 5% from 2020 — the largest single-year increase since the 1980s.

The final numbers for the year are still being calculated, but around 10 million policies were sold. That total was last exceeded in 2016. Researchers explain with around a million deaths attributed to the coronavirus, it’s not surprising people would begin to consider their own mortality and how their loss would affect loved ones.

Understand the Options

The life insurance industry made some adjustments in response to the pandemic. Some providers require blood or urine samples when forecasting the timing of a potential policyholder’s death, but many companies eased those requirements during lockdowns. Digital medical records are becoming increasingly important in this respect as well.

Some who bought life insurance in 2021 opted for a whole-life policy, which allows tax-deferred savings to build up and help offset premium costs over time. Others chose term life insurance, which only applies for a set number of years. This is often designed to cover a family’s primary expenses like mortgages and tuition bills in the event of someone’s death.

Three Keys to Follow

Like any investment or financial decision, deciding whether to buy life insurance and choosing the right policy is an involved process. Advisors say while the cost or premium you pay for the policy is important, it shouldn’t be the only consideration. Some consumer affairs groups have expressed concerns over certain types of policies, and insurance companies receive ratings as well.

You should be prepared to answer a few questions during the life insurance application process. At first you’ll get a quote from a life insurer, which is an estimate. It’s extremely important to answer honestly when you apply, or else you could be declined coverage.

Coverage and pricing are subject to eligibility and underwriting criteria.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.

Ladder, SoFi Technologies, Inc. ("SoFi"), and SoFi Insurance Agency, LLC ("SoFi Agency") are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other. SoFi and SoFi Agency do not issue, underwrite insurance, or pay claims under Ladderlife™ policies. SoFi Agency is compensated by Ladder for each issued term life policy.

By selecting Get a Free Quote, you agree to Ladder sharing with SoFi information about any insurance application you submit and any policy you may obtain.

Ladder offers coverage to people between the ages of 20 and 60 as of their nearest birthday for most products. Your current age plus the term length cannot exceed 70 years.

All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved.

How SoFi Agency is Compensated:
There is no charge to use SoFi Agency. However, we receive compensation from insurers and other vendors in the following ways:
● Commissions: A fee paid by the insurer for originating your policy, typically calculated as a percentage of your premium.
● Contingent & Supplemental Commissions: Performance-based bonuses from insurers for hitting annual targets, like customer volume or retention. (Supplemental commissions are based on past performance and known in advance; contingent commissions are not).
● Marketing Fees: Compensation for presenting promotions or linking you to an insurer’s application site.
● Affinity Partner Revenue: Income earned when you engage with or request services from third-party partners advertising on our platform.

If you have any questions about how we are compensated, please feel free to reach out to SoFi Agency.

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