There has been significant growth in no-medical life insurance policies, according to the Policygenius Life Insurance Trends Report 2022.
Demand for digital life insurance products has increased over the past year, likely due to the COVID-19 pandemic. From October to December 2021, approximately 56% of requests submitted through Policygenius were for policies without a medical exam, compared to January to March 2021, which was just 26%.
The report includes data from the top 10 insurance companies offered on the Policygenius Marketplace, a platform for consumers to compare insurers, receive advice and buy policies online.
“To meet customer demand, we’ve grown from three no-medical life insurance options at the start of 2020 to seven in 2021, with more on the horizon for 2022,” said Eloise Spinello, associate director. of account management at Policygenius, in a report. “More and more insurers are adapting to demand by offering no-medical options that consider all health classes equally, rather than reserving these options only for the healthiest applicants.”
Historically, the majority of people who purchased life insurance did so in person with an agent, but as the use of technology has increased, people have shown increased interest in online purchase options. line.
In 2020, only about 42% of people preferred to buy life insurance in person, according to the LIMRA Insurance Barometer 2020. Nearly 30% of consumers are interested in online shopping options, according to the study.
Data shows that term life insurance policies without a medical exam are priced on par with term policies requiring a full medical exam, with some policyholders paying less, according to the Policygenius Life Insurance Price Index. As consumers age, the price of life insurance increases, regardless of whether the policy requires a full medical exam or is a no-medical policy.
“Instant decisions are an important factor for some of our customers. Other clients mention up front that they don’t want a medical, so that’s another major factor,” Spinello said. “Even when non-drug policies are slightly more expensive, say $5-10 more per month, customers still opt for these because of the faster turnaround time.”