Tag: Policygenius

Was ‘The Staircase’ murder really about life insurance?

Mary Pat Campbell

Link: https://www.policygenius.com/life-insurance/news/staircase-michael-peterson/

Excerpt:

It’s been 21 years since novelist Michael Peterson was on trial for the murder of his wife, Kathleen, but the case is still capturing the public’s attention—most recently in an HBO Max series, “The Staircase.”

….

The case also involved the potential for a large life insurance payout. Kathleen had a $1.4 million life insurance policy, which was due to be paid to Michael in the event of her death. Prosecutors said Peterson was hoping to use the payout to address his debt [1] , including $143,000 in credit card debt.

…..

Peterson signed away any claim to the life insurance proceeds during the trial. However, because of the slayer rule, Peterson wouldn’t have been able to collect any money. Under the slayer rule, anyone suspected of murder or plotting a murder is prevented from benefiting from the dead person’s life insurance policy. Instead, Kathleen’s biological daughter, Caitlin Atwater, and her daughter’s father, Fred Atwater, received the money. [2]

In the scope of insurance fraud, life insurance murders aren’t a huge occurrence but they do happen, says Matthew J. Smith, executive director of the Coalition Against Insurance Fraud. For instance, in 2017, Joaquin Shadow Rams Sr., was convicted of killing his 15-month-old son for insurance money. Rams had taken out a $500,000 life insurance policy on the boy soon after he was born, which Smith says, should have been a red flag. 

Author(s): Lisa Rabasca Roepe

Publication Date: accessed 18 June 2022

Publication Site: Policygenius

Life Application Activity Cools Again

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2022/05/10/life-application-activity-cools-again/

Excerpt:

Policygenius, a life insurance web broker, uses its term life pricing information to provide monthly term life price index reports.

The company bases the index on prices for coverage with a 20-year-level premium term.

The lowest price shown is for coverage for a 25-year-old female nonsmoker who wants $250,000 in death benefits; The highest price is for a 55-year-old male smoker who wants $1 million in death benefits.

Policygenius figures suggest rising premiums may not be causing life application friction.

This month, the lowest price in the tables fell slightly, to $14.21, from $14.25 last month.

Author(s): Allison Bell

Publication Date: 10 May 2022

Publication Site: Think Advisor

The 2022 Policygenius Life Insurance Trend Report

Mary Pat Campbell

Link: https://www.policygenius.com/life-insurance/life-insurance-trend-report-2022/

Graphic:

Excerpt:

The marketplace has experienced a surge in insurance companies offering no-medical-exam life insurance — and accelerated underwriting options in particular — that satisfy the growing demand for quick, contactless coverage. 

“We went from having three [AU options] in early 2020 to seven in 2021, with more on the horizon for 2022,” says Eloise Spinello, associate director of account management at Policygenius. “More insurers are adjusting to demand by offering no-med options that account for all health classes as well, rather than reserving these options for only the healthiest applicants.” 

In addition to their convenience, accelerated underwriting policies are frequently one of the most affordable options for shoppers. Policygenius Life Insurance Price Index data from the last year shows that no-medical-exam term insurance policies are competitively priced compared to term policies requiring a full medical exam — and some applicants even paid less for no-medical-exam term coverage. For example, 25-year-old females buying $250,000 in coverage paid 1.6% less in 2021 for a no-medical-exam term policy than they did for a traditional policy. 

Author(s): Nupur Gambhir & Amanda Shih

Publication Date: 2 February 2022

Publication Site: Policygenius

Trends in Life Insurance 2022: How the Industry Has Changed

Mary Pat Campbell

Link: https://www.soa.org/sections/reinsurance/reinsurance-newsletter/2022/april/rsn-2022-04-gambhir/

Graphic:

Excerpt:

Growing popularity in no-medical-exam life insurance products has had one expected outcome: More life insurance policies with accelerated underwriting options available in the marketplace. For example, Policygenius offered just three accelerated underwriting options in 2020. In 2021, that number more than doubled to seven, and more options will likely be available in 2022.

Additionally, while such policies had historically only been available to applicants who were young and in good health, the competitive market has prompted more widespread availability. Now, applicants across all health classes can get no-medical-exam policies.

While no-medical-exam policies tend to be about the same cost as fully underwritten policies, applicants tend to favor them even when they are more expensive due to the convenience and expedited turnaround time.

Author(s): Nupur Gambhir

Publication Date: April 2022

Publication Site: Reinsurance News, SOA

The Policygenius Life Insurance Price Index March 2022

Mary Pat Campbell

Link: https://www.policygenius.com/life-insurance/life-insurance-price-index/march-2022/

Excerpt:

Smokers and nonsmokers alike saw minor increases in life insurance prices from February to March. The biggest increase in average monthly premiums, of 3.26%, was seen by 25-year-old smokers buying $250,000 in coverage, and only amounts to $1.08 more a month. Most other demographics saw price increases that were less than 1%.

The minor pricing changes shouldn’t have much impact on consumers’ wallets, especially as insurers continue to compete for business. Although people buying life insurance in March may be paying a few cents more on average, most insurers are implementing pricing changes to win business rather than repel it.

Publication Date: 3 Mar 2022

Publication Site: Policygenius

Older Consumers Keep Shopping for Life Insurance

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2022/03/10/older-consumers-keep-shopping-for-life-insurance/

Excerpt:

Older U.S. consumers were out shopping for life insurance policies in February.

Application activity for shoppers ages 71 and older was 4.2% higher last month than in February 2021, as the overall level of individual application activity dropped 3.8%, according to MIB.

MIB is a Braintree, Massachusetts-based group that helps life insurers share some of the information used in life insurance underwriting. It uses its own application-checking volume data to provide an early look at life insurance shopping activity.

MIB figures reflect the performance of part of the retirement planning market as well as of the protection life insurance market, because many of the applicants expect to use their policies to provide cash in retirement, or to support long-term care plans.

Author(s): Allison Bell

Publication Date: 10 Mar 2022

Publication Site: Think Advisor