Over the past few weeks, many life insurance companies have sharply lowered their risk assessments measured in benefits per 100,000 deaths from COVID-19. The Credit Suisse financial analyst Andrew Kligerman said the ratings dropped by an average of 40% to 50%.
There are two reasons for such a rapid decline. Most of insurance benefits fall on two clusters of populations: older Americans and minorities.
Seniors have much lower policies than middle-aged Americans. The latter usually buy insurance to protect spouses and children from the breadwinner loss seeking to cover mortgages and pay for the younger generation's college tuition. According to the federal Centers for Disease Control and Prevention, an impressive proportion of Covid-19-related deaths occur in people over 65.
Also, such minorities as African Americans or Hispanics had a disproportionate impact on mortality. These groups rarely buy life insurance policies.
Photos are from open sources.
