4 Ways COVID-19 Has Impacted Life Insurance Premiums

Financial Horizons: Insights for Building Wealth and Securing Your Legacy 

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

COVID-19 changed the world in more ways than we could have imagined, and the life insurance industry was no exception. For families and individuals trying to secure coverage, the pandemic brought new challenges—ranging from higher costs to restricted access.

At The C & R Group, LLC, we saw firsthand how these changes affected clients’ ability to plan effectively. That’s why we integrate these realities into our Expert Financial Analysis (EFA) and strategic tax planning to ensure your protection and wealth-building plan stays on course.

1. Raised Premiums, Especially for Older Individuals

Insurers reassessed their risk models during the pandemic, which led to increased premiums for older applicants and those with health risks. For families, this highlighted the importance of securing life insurance earlier, while premiums are still more affordable.

2. Decrease in Application Approvals

Some companies became far more selective about who they insured. Applicants with health conditions, recent travel, or increased risk factors often found their applications denied or delayed, even when they previously would have qualified.

3. Postponed Applications for Individuals with COVID-19

Applicants who tested positive for COVID-19 often had their applications put on hold until recovery. In some cases, insurers imposed mandatory waiting periods before reconsidering coverage. This delay left many families exposed without financial protection.

4. Restrictions for High-Risk Travel

Individuals who traveled to regions classified as “higher-risk” during the pandemic often faced application delays or added requirements. For global business owners and frequent travelers, this created additional obstacles in securing coverage.

Why This Matters for Your Financial Plan

The pandemic reminded us all that uncertainty is inevitable. But your financial security doesn’t have to be. At The C & R Group, LLC, we work with you to:

• Navigate insurer restrictions and identify the best carriers for your needs.
• Incorporate life insurance into a broader tax-efficient wealth plan, leveraging laws like IRC §101 (tax-free death benefits) and §7702 (policy definitions).
• Create strategies that protect your family while building long-term savings through tools like Indexed Universal Life (IUL) policies.

Life insurance is more than just a safety net—it’s a cornerstone of financial resilience. The earlier you secure coverage, the better positioned you’ll be to handle unexpected challenges like those brought on by COVID-19.

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About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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