Americans are ‘panic buying’ life insurance due to coronavirus pandemic

  • Many firms have noted double-digit increases in the number of life insurance policies they’ve sold during the Covid-19 pandemic relative to last year. 
  • The increase is largely due to a fear of death and greater awareness of financial risks associated with mortality, experts said.
  • Insurance sales have been dwindling for years. In 2020, just over half of American adults reported having a life insurance policy, down from 63% a decade earlier.





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Life insurance is enjoying something of a renaissance as a result of the coronavirus pandemic.

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Consumers, especially younger adults, have been buying insurance in elevated numbers since the spring, when thousands of Americans began getting ill and dying from Covid-19.

That result is logical, experts said, given the core use of life insurance: as a financial backstop in the event of death.

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Life insurance sales increase due to coronavirus pandemic

shapecharge | E+ | Getty Images

Life insurance is enjoying something of a renaissance as a result of the coronavirus pandemic.

Consumers, especially younger adults, have been buying insurance in elevated numbers since the spring, when thousands of Americans began getting ill and dying from Covid-19.

That result is logical, experts said, given the core use of life insurance: as a financial backstop in the event of death.

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For example, what if the breadwinner of a family dies unexpectedly from Covid-19? Insurance is meant to plug that immediate gap in household income.

“It’s forced the idea of financial protection and mortality to the top of mind for consumers in a way very few

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FAFSA completion campaigns get creative in the age of coronavirus

“We are adapting,” said Austin, a counselor with College Advising Corps., which deploys recent college graduates into high schools to guide students. “Students without reliable Internet at home may have trouble completing the form, which is a big motivation for doing a drive-in.”

Getting students to fill out the Free Application for Federal Student Aid, known as FAFSA, will be no small feat this year. The pandemic has emptied school hallways where counselors can remind seniors to apply and has rendered unsafe face-to-face fairs advisers host to guide parents through the process.

The federal government, states and colleges use the FAFSA to determine need-based and some merit-based aid. Students, especially those from low-income households, miss out on billions of dollars in federal grants, work-study, subsidized student loans and state scholarships every year by failing to complete the form.

The stakes are high this year. Anemic tax revenue threatens state-sponsored scholarships

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TREASURIES-Yields tumble on data, rising coronavirus cases

By Karen Pierog

CHICAGO, Oct 13 (Reuters)U.S. Treasury yields moved lower on Tuesday driven by soft economic data and a rise in COVID-19 cases globally that raised concerns of potential weakness ahead.

The benchmark 10-year US10YT=RR yield was last down 4.3 basis points at 0.7322%.

Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research in New York, pointed to “a lot of soft data coming out of Europe,” as well as the latest U.S. consumer price data for the downward move as the market returned from Monday’s Columbus Day holiday.

Yields extended their fall after a U.S. Labor Department report showed consumer prices rose for a fourth straight month in September but at a slower pace amid considerable slack in the economy .

Jones said more COVID-19 outbreaks in the United States and other countries were seen as constraining economic activity.

Meanwhile, the

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Big money managers flee cash despite coronavirus, election worries

Big money investors have over the last six months poured cash into the markets at the fastest pace in 17 years as they fretted over COVID-19 and the upcoming presidential election, according to a new survey from Bank of America.

Cash holdings fell to 4.4% in October, down from 4.8% in September, and have now dropped 1.5 percentage points since April, the fastest decline since 2003. A reading below 4% is considered investor greed.

Respondents “said the recession is over, reduce cash, pause cyclical rotation, and price in contested election & February vaccine,” wrote Michael Hartnett, chief equity strategist at Bank of America. “We say sell SPX > 3600 and cyclical rotation via banks/energy to resume in Q4.”

Ticker Security Last Change Change %
SPX n.a. n.a. n.a. n.a.

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Uptick for retiree checks in 2021 amid coronavirus worries

WASHINGTON (AP) — Social Security recipients will get a modest 1.3% cost-of living-increase in 2021, but that might be small comfort amid worries about the coronavirus and its consequences for older people.

The increase amounts to $20 a month for the average retired worker, according to estimates released Tuesday by the Social Security Administration. That would follow a 1.6% increase this year in the cost-of-living adjustment, or COLA.

The COLA affects the personal finances of about 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, all in all some 70 million people.

The economic fallout from the virus has reduced tax collections for Social Security and Medicare, likely worsening their long-term financial condition. But there’s been no real discussion of either program in the personally charged election contest between President Donald Trump and Democrat Joe Biden.

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JPMorgan Profit Rises 4%, A Surprising Show of Coronavirus Resilience

JPMorgan Chase


JPM 1.23%

& Co. said Tuesday that its third-quarter profit rose 4%, a surprising result for the nation’s biggest bank during a recession that has hammered much of its business for the year.

The bank set aside just $611 million for potential future loan losses, far less than expected and the $10.47 billion it booked in the second quarter. Profit doubled from the second quarter.

The bank’s profit rose to $9.44 billion, or $2.92 a share, from $9.08 billion, or $2.68 a share, a year earlier. Analysts had expected $2.23 a share, according to FactSet.

Analysts and investors will look for the bank to detail what it expects for the economy in calls Tuesday morning. JPMorgan executives signaled three months ago that they were settling in for a long recession, growing more dour than they had been at the start of the pandemic. The slowing reserve build signals

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Coronavirus support measures for insurance customers extended until December 31

Insurers have confirmed that pledges to support people working from home due to coronavirus and motorists whose habits have also changed because of the pandemic will last until at least the end of this year.

he Association of British Insurers (ABI) said the extra support already in place, which was due to expire at the end of October, has been extended until December 31 2020.

The ABI said this could be of significant help to many of the UK’s 17 million home insurance policyholders and 27 million motor insurance customers.

Under the temporary support measures, if someone is an office-based worker who is working from home because of the pandemic, their home insurance will not be affected. They do not need to contact their insurer to update their documents or extend their cover.

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Coronavirus affecting bottom line for most small businesses in final quarter of year: report

NEW YORK — The final three months of the year, usually a boom time for many small businesses thanks to holiday shopping and celebrations, looks precarious as the coronavirus maintains its grip on the economy.

Owners contending with government restrictions or crumbling demand are trying to hold on, with some creating new products and services or desperately searching for new customers. Others, however, have found they’re already well equipped to meet the lifestyle changes brought about by the pandemic.

The big corporate and non-profit parties and events that Sophia D’Angelo ran before the virus outbreak have just about vanished. Large in-person gatherings that companies typically use to launch or promote their brands aren’t possible because of social distancing requirements.

“The fourth quarter was always the bulk of my business,” says D’Angelo, who owns Boston Experiential Group, based

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McDonald’s, Chipotle and Domino’s Are Feasting During Coronavirus While Your Neighborhood Restaurant Fasts

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are gaining customers and adding stores while tens of thousands of local eateries go bust.

Larger operators generally have the advantages of more capital, more leverage on lease terms, more physical space, more geographic flexibility and prior expertise with drive-throughs, carryout and delivery. A similarly uneven recovery is unfolding across the business world as big firms have tended to fare far better during the pandemic than small rivals, thinning the ranks of entrepreneurs who could eventually become major U.S. employers. In the retail world, bigger chains like

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are posting strong sales while many small shops struggle to stay open.

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