Life insurance is an easy decision to put off. It’s something many people will do later. But the longer people wait, the more they risk paying significantly higher rates. If an accident or illness hits before someone purchases a policy, what once may have been an affordable plan can become financially out of reach. People should lock in their rates as soon as possible to ensure the lowest premiums. Now is a great time to get a life insurance policy that could save the policyholder’s family more money. People might be surprised at how simple it can be to purchase life insurance coverage so that should the unexpected happen, the financial resources their family needs will be there.

According to a 2022 LIMRA study, one in five LGBTQ Americans surveyed says COVID-19 prompted them to purchase life insurance, five percentage points higher than the general population. In addition, more than half of LGBTQ Americans (54% ) surveyed said COVID-19 made them more health-conscious, and 24% said they were more likely to discuss end-of-life issues with family because of the pandemic.

LGBTQ Consumer Perception around Life Insurance

According to a LIMRA study, unlike the general population, perceived cost is not the top reason LGBTQ consumers give for not buying coverage. 45% of respondents say they haven’t purchased coverage because they have other financial priorities, compared with 40% saying it is too expensive.

Getting a life insurance policy can be easier than one thinks. Start online is best since prospective policyholders can gather numerous quotes without leaving home. But, first, consumers should educate themselves on policy types,shop around and then gather quotes from several insurers.

Where LGBTQ Consumers Seek Information About Life Insurance

1. LGBTQ consumers surveyed say the most common online platforms used for information about financial products include YouTube (64%), Facebook (57%), and Instagram (42%).
2. More than 1 in 3 LGBTQ American participants (35%) report working with a financial professional, and another 26% are looking to engage one.
3. LGBTQ Americans are far more likely than other consumers to say they prefer to purchase life insurance online. Forty-one percent surveyed say they would choose to buy online, compared with just 30% of the general population. Other ways LGBTQ consumers prefer to purchase life insurance include:
   1. Through a financial professional (24%)
   2. By phone or mail (15%)
   3. Through the workplace (11%)

Types of Life Insurance for LGBTQ Individuals

Overall, Americans’ financial stress is at its highest level since the start of the pandemic. This stress is affecting everyone, including members of the LGBTQ community. Fewer LGBTQ Americans leverage the financial tools that can alleviate financial stress and support financial security. Here are some of the most popular life insurance policy types to consider:

Term Life Insurance

Term life insurance can last 10 to 30 years, depending on what the policyholder chooses. The policyholder risks outliving the policy, but premiums are much cheaper than permanent life insurance.

That said, longer-term lengths generally charge higher premiums. Additionally, policyholders can get a return on a premium rider if they want. This requires the policyholder to pay higher premiums, but if they outlive the policy, the insurer pays all their premiums back.

Whole Life Insurance

Whole life insurance is a form of permanent life insurance, meaning it lasts for a lifetime as long as the policyholder keeps up on their premiums. Premiums cost more than term life insurance, but the policyholder gets peace of mind from lifelong coverage.

These also come with a cash value savings component. Part of each premium goes into this cash value component. It then grows tax-deferred at a fixed interest rate. Once this cash value grows enough, policyholders can tap into it via low-interest, no-credit-check loans or withdrawals.

Policyholders can receive their cash value back if they surrender their policy. However, if they surrender it early into the policy term, the insurer may deduct surrender charges from the cash value payout.

Final Expense Insurance

Final expense insurance is a small whole life insurance policy created to cover end-of-life costs, such as medical care and funerals. Final expense insurance death benefits are much smaller than whole life insurance, but premiums are also much lower, and they still come with a cash value component. Most final expense insurance policies don’t require a medical exam, either.

Helping LGBTQ Families Protect Their Financial Future

Overall, LGBTQ Americans are more likely to express financial concern than the general population in most areas. LGBTQ Americans are much more concerned about supporting themselves in the event of a disability or injury and being able to save money for an emergency. Paying their monthly bills, credit card debt, and mortgage also worried more LGBTQ consumers.

Fidelity Life can help consumers find a term life insurance policy that fits their needs, including their budget. An applicant provides information to help match them with a life insurance policy. The applicant can select the policy and then get a quote online or with the help of a licensed agent. Fidelity Life will then guide the applicant through the application and purchasing process.