COVID-19 has rekindled interest in life insurance in the UK after five years of falling sales. According to a report published in the journal Cover about a research study conducted by Salisbury House, the sales of life insurance covers were down 26% in the last five years but interest in life insurance has risen again after the pandemic struck the country in March this year.
Salisbury House research quoting Financial Conduct Authority of UK data showed life insurance sales fell from 478,745 in 2015-16 to 353,194 in 2019-20 in the personal investment space. The value of premiums paid each year also fell from £7.6bn ($9.54bn) to £4.3bn over the same period.
The study found that the pandemic had brought life insurance back into play and providers were adapting their processes in light of the changes.
Salisbury House managing director Tim Holmes said, “Coronavirus has brought the need to ensure dependants are financially secure after your death sharply back into focus.”
According to the research, insurers are incorporating COVID-19-related questions into their application process, and for some applicants, that are seen as at risk of contracting COVID-19, it has been reported that applications are being put on hold.
Also, there are concerns that frontline healthcare workers may find it harder to get life insurance cover. It also said people with underlying health issues, such as diabetes, which are seen as a risk-factor for COVID-19 may have to shop around to get a sensibly priced life insurance policy.
Mr Holmes said, “Although taking out life insurance may not be a popular topic or even a primary concern for many young people, there are distinct advantages of thinking about it early.”