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The Value of Locking in Insurability

Aug 24, 2021

Key Takeaways

  • The COVID-19 pandemic revealed how much uncertainty there is in nearly every aspect of our lives.
  • Americans increasingly look to life insurance to secure their family’s future financial security.
  • Term insurance can provide an affordable way to lock in insurability (the ability to qualify for life insurance).


The COVID-19 pandemic was a wake-up call for many, revealing just how much uncertainty there is in nearly every aspect of our lives. It forced us to consider not only our health but our job security, household finances, access to medical care, access to food and household supplies, and when we could travel to visit with family and friends. It was a harsh reminder that life is full of uncertainty.

Yet one result of all this disruption is that Americans are increasingly looking to life insurance to protect their families against the financial risks they may face. Thirty-one percent of consumers now say they are more likely to buy life insurance as a direct result of the pandemic1. Life insurance can provide protection for their loved ones if they were to pass away unexpectedly, and it can help secure their family’s financial security.

Of the two main types of life insurance—term and permanent—term insurance can be especially attractive to many buyers due to its affordability. With the help of term insurance, families can afford to make sure they will be able to maintain their lifestyle and reach their dreams and goals even if the family breadwinner dies unexpectedly.

Term insurance also can be a key building block in a well-structured financial plan as it can lock in a buyer’s insurability—the ability to qualify for insurance—at the same time it locks in affordable death benefit protection for a set period of time.

Locking in future insurability with a term life insurance can be valuable as it offers:

  • Protection through health changes. As people age, they are more likely to develop health problems that could make life insurance more expensive or even disqualify them from buying it. Therefore, it is recommended to buy life insurance when you are young and in good health to secure coverage and take advantage of lower premium payments. Importantly, many term life policies have a conversion feature, which allows a policyholder to convert their term policy to a permanent policy before the term expires without going through another medical exam—even if their health declines while the policy is in force. This ability to lock in coverage, or insurability, is extremely valuable given the many health changes someone might experience over the many years—perhaps as much as three decades—that a term policy can last.
  • Protection through job changes. America’s baby boomers hold an average of 12 jobs over the course of their lifetime, a 2019 U.S. Bureau of Labor Statistics survey found2. Buying term insurance to supplement group life coverage offered by an employer allows people to have higher levels of coverage with less vulnerability to job market disruptions.
  • Protection against debt and final expenses. Americans have become increasingly comfortable carrying higher levels of debt. Life insurance can provide the peace of mind that comes from knowing that loved ones will be able to pay off the mortgage and other debts, remain in their home, maintain their lifestyle, and continue a child’s education plan.



Term insurance can provide an affordable way to lock in future insurability and serve as a first step in creating a holistic financial plan that includes protection for loved ones.


Read More

To learn more, read The Value of Locking in Insurability  PDF Opens in a new window.

 You may also be interested in other Life EventsOpens in a new window topics.



  • 1 LIMRA/Life Happens, “2021 Insurance Barometer Study,” 2021.
  • 2 U.S. Bureau of Labor Statistics, "Number of Jobs, Labor Market Experience, and Earnings Growth: Results from a National Longitudinal Survey," August 22, 2019.


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