HealthcareInequitable Rural Health Trends Create Dire Need for Affordable Life Coverage Options

The citizens of small towns and close-knit rural communities are some of the most hardworking and resilient Americans. They are also some of the most vulnerable. There’s a growing health disparity between rural and urban populations, and life insurance is a crucial tool that can fortify these communities against some of the biggest challenges they face.

President & CEO of WoodmenLife Denise M. McCauley notes that, “Compounding the health disparities is the fact that many rural Americans are uninsured or underinsured. Life insurance is a critical safety measure — and one that can help shrink the gap. Now is an important time to examine how affordable life insurance can support rural communities and help address long-standing inequities.”

The challenge: Rural Americans have limited access to care.

In addition to a scarcity of providers, sparsely populated parts of the U.S. have to contend with numerous challenges to healthcare access.

• In remote areas, medical care is often a long drive away, and the lack of public transit infrastructure can make seeing a doctor quickly difficult and finding specialty care next to impossible.
• Broadband isn’t universally available, so telehealth isn’t, either. While The BEAD Program has worked since 2021 to install WIFI in the most underserved parts of the country, 2 million homes remained offline as of late 2023.
• Rural areas face higher rates of poverty and unemployment, making it difficult to pay for healthcare.
• Large numbers of rural hospitals and clinics have shuttered in the last two decades, largely due to the high cost of operating in areas with limited resources and people.

How life insurance can help: Bridging the healthcare gap through living benefits.

While life insurance coverage is commonly used by families to cover expenses after the insured has passed away, there are ways a policy can help during one’s lifetime.

• Some policies include riders that allow policyholders to access funds while they’re living — to manage illness through medical treatments, in-home assistance, or facility care. A rider may even allow a family member to be paid to provide in-home care.
• There are policies that offer accelerated death benefit riders that allow members to access a portion of their benefit early if they’re diagnosed with a qualifying terminal or chronic illness. This may help them access funds for medical needs or expenses before death, like assisted living or nursing home care.

The challenge: The unique health risks of rural industries.

Many small towns and communities rely on professions that put workers at greater risk, due to both the nature of the work and the lack of nearby healthcare.

• Farming, mining, and logging present an array of health risks including physical injury; chemical exposure; respiratory exposure to molds, coal dust, sawdust, and animal waste; environmental exposure to heat and cold; and elevated mental health risks tied to stress, high-risk work, and financial uncertainty.
• Small business owners in rural towns tend to be responsible for every detail, with little time off and lots of daily stressors. They frequently lack the resources to implement robust health and safety measures.
• The service industry can threaten a number of injuries: burns, falls, chemical exposure, heavy workloads, long hours, high stress, and more. In a small town, these risks may be compounded by the lack of alternative work options or sufficient workplace support.

In rural communities, all of these industries are disproportionately impacted by higher rates of anxiety, depression, substance abuse, and suicide. And they often lack the necessary resources to address these issues.

How life insurance can help: Offering support to rural individuals and families.

• For rural families, the sudden death of a loved one could mean the loss of their main breadwinner, the loss of a business or farm, and a significant risk to the entire family — and the community. McCauley explains, “If a store or farm closes for business, many livelihoods may be lost. Life insurance can offset this financial hardship and offer security for the family, business, and community.”
• Most permanent life insurance policies have cash value that can be borrowed against if a primary earner becomes ill. This can help families avoid selling off land or equipment.
• Critical illness riders may help with income replacement should a policyholder become sick or injured and unable to work.
• Providers can offer community outreach in the form of food drives, discounts on critical items, fitness incentives, and events that foster a sense of community — all of which promote better mental and physical health.

Beyond these benefits, life insurance may offer peace of mind. Knowing they have a policy in place may help mitigate some of the stress and anxiety small-town families and communities face. Understanding they have a secure financial plan regardless of life’s unpredictability can ease some of their stress and worry.