COVID-19 triggers sharpest rise in life insurance coverage payouts since 1918 flu epidemic
The impact on the life insurance sector was less than expected at the start of the pandemic, according to the Wall Street Journal, with many of the victims being the elderly who typically have smaller policies.
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ACLI’s data also showed how COVID-19 affected policy sales, with the council posting total life insurance coverage of $ 20.4 trillion last year, including a record life insurance coverage of $ 3.3 trillion -Dollar.
A total of 43.1 million life insurance policies were taken out last year. The number includes group life insurances, mainly available through employers, which grew 19% from 2019 to 2020, and individual coverage increased nearly 3% over the period.
“The data tell a compelling story of the resilience of life insurers and their ability to protect America’s financial future at all times,” said Andrew Melnyk, vice president of research and chief economist at ACLI. “In a stressful year for everyone, life insurance benefits have given families the opportunity to financially survive the loss of a loved one.”
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According to the council’s figures, annuity payments to consumers rose to $ 91 billion in 2020, up 3.9% year over year. During the reporting period, industry assets rose from $ 7.6 trillion to $ 8.2 trillion, an increase of 7.7%.