COVID v. Algorithms. Now I’m Missing the Good Old Days!

It used to be easier to get a new life insurance policy issued on a favorable basis. To the surprise of many, even after COVID peaked, as long as the applicant didn’t currently have it, COVID was pretty much a non-issue in the process.

All this year, however, I’ve been sensing increasing scrutiny from a number of the carriers we engage with on behalf of our clients. It’s still not a COVID-related problem, however, it’s these doggone algorithms. Here’s a case in point.

A healthy client of 71 required an additional $1 million of coverage. We reached out to seven companies who offered the most appropriate solution. Six of them turned us down. One shared that if the client had been 10 years younger, their algorithm would have allowed approval.

Fortunately, the 7th company didn’t have that same algorithm. The situation made financial sense and the client had the ability to pay. The insurance company was happy to approve the policy on a favorable basis.

As technology evolves, the increasing use of AI and algorithms is inevitable. I’m not implying that’s bad, but two years ago I would have expected five good offers out of seven, not one out of seven.

For your consideration, here’s my takeaway. For at least a half dozen good reasons, life insurance is becoming more complex, not less. The need for clarity and objective insight is therefore increasing as well. Protecting your family and your clients with a good review is really  even more important going forward. Please consider a good review. The folks the policy is intended to protect will be better off for the effort.


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