The life insurance industry is currently full of many successes, opportunities, challenges and misconceptions. This is the conclusion of Robert Kerzner, president and CEO of LIMRA (Life Insurance and Market Research Association, Inc.), LOMA and LL Global Inc., speaking at the LIMRA’S recent annual Life Insurance Conference focusing on the state of today’s industry. Based on LIMRA’s extensive collection of data over the last year, here are some highlights:
- 75% of all Americans have confidence in life insurance companies
- 90% of Americans who own individual life insurance have faith and confidence in the products and the companies that are buying from
- 8 out of 10 consumers surveyed that have had a positive experience with life insurance say that it plays a critical role after the death of a loved one.
- 67% of Americans feel that life insurance gives people peace of mind. Therefore, a core objective in the sales process should be to relate the peace of mind and financial security that life insurance offers.
- 58 million Americans are under-insured. According to the statistics, people know they need life insurance, but making it enough of a financial priority is easier said than done. When a family undergoes financial hardship, life insurance premiums are among the first fixed payments to be stopped.
- Constant fluctuations of the legislative and regulatory environment, low interest rates, and a tepid economic recovery are the three major economic realities that make it difficult for consumers to buy permanent life insurance right now.
- The industry has got to find a way to help families understand the value of life insurance. Heads of households understand the economics, but they may not fully grasp the emotional trauma that follows the death of a loved one. Life insurance can provide one less thing to worry about after such a wrenching life event.
- Most consumers do some rudimentary research online before they purchase anything these days. Expanding social media presence to include prospecting will become increasingly important.
- Many households require two incomes to make ends meet. Many working wives and mothers are now earning more than their husbands. Even in situations where the husband earns more, many times it’s the wife who makes financial decisions. Life insurance on both income-earners becomes imperative for the continuation of family financial stability in the event that either dies.