During coronavirus crisis, some life insurers hit pause on older Americans

April 17 (Reuters) – Some U.S. life insurers are deciding not to gamble on older Americans during the coronavirus crisis by temporarily suspending applications from certain age groups or imposing tougher requirements.

Prudential Financial Inc, Lincoln National Corp and Protective Insurance Corp. are among the insurers that have made changes. Prudential and Protective are temporarily halting applications from individuals aged 80 or older, while Lincoln has postponed approving policies for that age group and others, the companies said.

Mutual of Omaha Insurance Co and Penn Mutual Life Insurance Company are temporarily suspending applications for individuals aged 70 or older. Securian Financial has stopped accepting new applications for those 71 and older until at least June 15, according to memos seen by Reuters.

Insuring older Americans can be a big risk for U.S. life insurers under the best of circumstances, but it brings in hefty premiums. A healthy 40-year-old woman pays about $180 annually for a $250,000 term life policy, while a healthy 70-year-old woman pays $2,244, or 1,146% more, according to online brokerage Policygenius…Read more>>