This September, Life Insurance Awareness Month is celebrating its 10th annual campaign with a focus on educating millennials and those beginning their careers about the importance of a sound financial future.
Based on a strong partnership between LIMRA, a leading research conglomerate among other things, and Life Happens, a nonprofit organization, this annual event has grown into a momentous occasion attracting high profile endorsements from people such as this year’s spokesman, Boomer Esiason.
“Our research shows less than half of middle market consumers, ages 25 to 64 have individual life insurance coverage, and the most common excuse for not having it is cost,” said Dr. Todd Silverhart, Corporate Vice President & Director, LIMRA Insurance Research. “The problem is we found many consumers don’t understand what insurance actually costs. On average, people over estimate the cost by a factor of three.”
Dr. Silverhart went on to explain the importance of getting life insurance sorted out sooner rather than later based on age factoring into the underwriting process, with premiums having a positive relationship with age.
Above all, it is vital for providers to find out what their client’s financial situation is to properly assess the appropriate amount of coverage needed.
“Individuals need a complete and thorough analysis of their financial standing. We found those who did complete the needs analysis tend to buy life insurance if they don’t have it, and more of it if they already do,” explained Silverhart.
Brokers and agents have been increasingly targeting middle market consumers and searching for what LIMRA coined the ‘holy grail for sales.’
Interestingly a LIMRA study of middle-market consumers found that 60 % of these potential customers “prefer to buy life insurance face-to-face with a financial professional,” but one in four people under the age of 45 say they “prefer to apply for it online.”
Rather than trying to find a one-size-fits-all solution, Dr. Silverhart emphasized the marketplace is not homogenous and targeting subgroups could serve as a better alternative. In short, each person is different and online offerings may be better for some, while a local personable offering may work better for others.
Nevertheless, LIMRA did believe a common thread for all successful services included it being easy, convenient and simple.
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