The Psychological Toll Of COVID-19 And Life Insurance Underwriting

By Emily Bancroft

COVID-19 has changed our lives. As we near the close of 2020, and reflect on the year that has been, many people feel an overall sense of uneasiness and lack of clarity for what the winter of 2021 will look like.

There is hope as newly created vaccines hold promise, but the other side of this pandemic may be, at best, months away. Although we don’t know what the future holds, we can consider what has happened these past months, and hope for an improved outlook.

The implications of the pandemic are far-reaching, but one that we already see in the life insurance industry is the impact on mental health. Consider the following groups when pondering the toll on society’s mental well-being:

Frontline health workers (EMS workers, doctors, nurses, cleaning staff, etc.).
Other frontline workers (restaurants, grocery stores, etc.).
Sufferers of quarantine fatigue.
COVID-19 survivors.
Children whose education is interrupted.
The elderly.
Parents juggling work and life balance.
Communities experiencing increased crime.
People struggling with domestic abuse issues.
Families and friends traumatized by suicides.
People battling drug and alcohol abuse.
People avoiding medical treatment for fear of catching COVID-19.

These scenarios are coming into play both in driving increased consumer interest in insurance coverage and in the information being reviewed during the insurance process.

Let’s focus here on mental health and the underwriting process. As underwriters, we are seeing proposed insureds with no previous history of mental health issues being sidelined by anxiety and depression, such as:

Mothers who lie awake at night wondering if sending their children to school is in the family’s best interest.
Health care workers experiencing post-traumatic stress disorders from what they have seen while not having a day off for months.
COVID-19 survivors now living in a rehabilitation center relearning basic skills such as walking.

These scenarios, and many more, have a direct correlation to mental wellness. As insurance professionals, we are charged with doing what’s in the best interest of our clients. Providing access to life insurance products is more critical than ever.

One of the most useful things that can be done is to look to our collective history for lessons learned. The Spanish flu pandemic (1918-1920) was unique in many ways as the world was engaged in World War I. Greg Eghigian of Penn State University, provided a historical glimpse into that time:

“When it comes to mental health, the historical record shows that the pandemic, like the war, took a toll on the emotional resilience of those not (or not yet) in harm’s way. The massive and sudden loss of life plunged many into a chronic state of helplessness and anxiousness … For others, the experience left them feeling a mix of guilt, anger, confusion and abandonment. Surviving health professionals were not immune to such sentiments, with many of them noting that they were haunted by a sense of frustration and grief, even years later … If history teaches us anything, it is that we should always be measured in how we learn lessons from the past. That said the example of the influenza of 1918-1920 gives us reason to expect that the present pandemic will carry in tow its own set of mental health challenges.”

Some disturbing statistics recently came to light. CNN reported on Nov. 29, 2020, “In Japan, government statistics show suicide claimed more lives in October than COVID-19 has over the entire year to date.” The report went on to say that women were disproportionately impacted as well.

In October, ABC News reported, “There is a mental health wave to this pandemic.” Dr. Ken Duckworth, chief medical officer of the National Alliance for Mental Illness, told ABC News. “We as a species don’t do well with uncertainty.” Additionally, “The pandemic, for many Americans, has exacerbated already-stressful scenarios – death of loved ones, illnesses, loss of income … All of these factors are contributing to more suicides, overdoses and violence. And specialists warn that this mental health pandemic within the virus pandemic also will disproportionately affect Blacks, Hispanics, the elderly, people of lower socioeconomic status of all races and health care workers.”

Mental health awareness has been increasing over the past decade. Historically, mental health was more of an afterthought for many. A stiff upper lip was considered more appropriate by societal standards. The stigma of mental health continues to evolve. But as a society, there is much more appreciation for this overall aspect of health and wellness due to increased public health funding and support to educate society as to the overall health implications of mental health.

The Centers for Disease Control and Prevention notes, “Mental and physical health are equally important components of overall health. Mental illness, especially depression, increases the risk for many types of physical health problems, particularly long-lasting conditions like stroke, type 2 diabetes, and heart disease. Similarly, the presence of chronic conditions can increase the risk of mental illness.” As we look toward the future we will need to embrace the important role that mental health plays in recovering from this pandemic.

As stated earlier, we are charged with doing what’s in the best interest of our clients. Providing access to life insurance products is more critical than ever.

Emily Bancroft, MS, ALMI, AIRC, ACS, is senior underwriter with Crump Life Insurance Services. She may be contacted at [email protected].