The only logical conclusion is that every insurance policy will become more difficult to obtain. This video was created prior to COVID-19, and the underwriting will get harder, and interest rates are lower.
Insurance, ALL OF IT, relies on an estimate of the average. Examples:
BUT NOW, COVID-19 will result in one thing.
- the average life expectancy
- the average healthcare cost incurred by a policyholder
- the average failure rate of a refrigerator
- MORE variability from the average. Let's take a simple example. Let's say that hurricane miss the expected landing spot by 5 miles. However, for some reason, hurricanes change so that hurricanes miss the expected landing spot by 20 miles. It is now riskier, right? The cost of insurance includes the fact that wider variability can be incurred.
- Bottom lines: you can expect greater scrutiny on any application that requires health underwriting.
- The common takeaway from about 10,000 articles? Control the stuff you can, as soon as you possibly can. If the objective is important to you., and if the cost is manageable within your financial resources, it is best to ask sooner, rather than later.