With the COVID-19 pandemic here for seemingly the long haul, one sector that has seen an increase in business is life insurance.

The MIB Life Index shows that applications in the United States were up 1.5% in the first half of 2020 compared to the same period of 2019, and applications from those under the age of 44 were up 3.4% in that period. 

But is that a knee-jerk reaction? Ellicott Center for Rehabilitation and Nursing has a look at whether you need life insurance during the pandemic. 

Only Buy if You Need It

Experts say you should buy life insurance if you have a need for it even if we weren’t in the middle of the pandemic. In other words, don’t make COVID-19 your determining factor in buying. You should have a plan for the money that would be distributed in case of a tragedy. For example, paying off a mortgage or student loan, recently getting married, or having a child. 

Know What Kind You Want

There’s a difference between term life insurance and permanent (universal) life insurance. Term will cover you for a specific period of time (20 or 30 years, for instance), and you are covered until the policy runs out. This is generally cheaper the younger you are.

Universal life insurance essentially creates a savings account that earns interest and/or dividends, you may be able to borrow against it, and it will be distributed upon your death. These policies guarantee money regardless of when you die, but they can be up to 10 times more expensive than term life insurance.

Only Buy What You Need

Most standard policies range from $250,000 to $1 million, but determine how much money you would need to cover what you want to be covered, and shop for that amount. Additionally, many employers offer basic life insurance (oftentimes, one year’s worth of salary is covered), and you can purchase more multiples of that with the cost being deducted from your paycheck.

The bottom line: don’t buy life insurance just because of the pandemic, but if you need it, now is as good of a time as ever to buy. 

To learn more about Ellicott Center for Rehabilitation and Nursing and all of the services they offer, visit http://ellicott-center.facilities.centershealthcare.org/.