The US life insurance industry lost $50 billion in the first quarter of 2020, but the cheapest type of life insurance should also be the least affected
According to data from S&P Global, the life insurance industry lost a total of $50 billion in the first quarter of 2020.
A big share of life insurance companies’ revenue comes from annuities, or insurance contracts which provide retirement income after purchase.
Since this money is invested, it’s especially vulnerable to market fluctuations.
The least affected product from these losses will be term life insurance, a product that’s more insulated from the market.
Prices could increase marginally, but term life insurance will still be the most affordable way to cover your family.
Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »
According to new data from S&P Global, the US life insurance industry saw big drops recently — in the first quarter of 2020 alone, the industry lost more than $50 billion.
But the industry losses shouldn’t affect every type life insurance equally, says Steven Weisbart, a senior economist with the Insurance Information Institute. Because each product is so different, life insurance options like annuities and universal life plans will be more affected than options like term life insurance. See the rest of the story at Business Insider
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