Life insurers halting applications from elderly amid coronavirus pandemic

A handful of U.S. life insurance providers are temporarily suspending applications from older adults amid the coronavirus outbreak.

Prudential Financial, Lincoln National and Protective Insurance are among the few providers imposing stricter requirements for life insurance applicants, according to Reuters.

Prudent and Protective will temporarily suspend applications from people who are 80 or older, with Lincoln imposing similar restrictions for the same age group.

Other companies restricting age groups include Mutual of Omaha Insurance, preventing applications for those who are 70 years or older, while Penn Mutual Life Insurance will stop accepting applications from people 71 and older until at least June 15, the report added.

Some companies will suspend applications for individuals in their 60s who previously qualified but are now barred if they have preexisting conditions such as diabetes or asthma.

According to the U.S. Centers for Disease Control and Prevention (CDC), American individuals who are 65 and older represent eight out of every 10 deaths from COVID-19, the disease caused by the coronavirus.

Insuring older Americans can be a risky move for companies, but most insurers charge larger premiums for older applicants.

For example, a 40-year-old woman in good health might pay around $254 annually for a $250,000 15-year term life policy, while a healthy 60-year-old woman pays $1,329 or more, according to Policygenius, an online brokerage.

Life insurance policies for people in their 70s represent around 2 percent to 3.5 percent of sales, some insurance companies told Reuters.