According to a few recent studies conducted by LIMRA, an insurance and financial services trade association, there are some interesting life insurance statistics with regard to families.
Discover three new trends about life insurance that might surprise (and affect) you:
Life Insurance Becomes Easier to Understand
In conjunction with Maddock Douglas, an innovation consulting firm, LIMRA published a study titled, “Get Real: Industry Innovation Through Authentic Language.” The research revealed that a significant amount of potential customers will defer purchasing life insurance or decide not to purchase it entirely, due to language that is too industry-centric and not readily understood.
In order to make life insurance simpler, the study suggested that there needs to be a considerable change in the language used in the industry. The research not only recommended “authentic communication” as the solution to this problem, but also provided six components of authenticity: easy to understand, down to earth, memorable, positive, credible, and relevant.
Millennials Become Increasingly Important Decision Makers
In the same study, LIMRA noted that, as a whole, Generation Y (aka Millennials) is a group that might be most affected by this change in language surrounding life insurance. The research revealed that although Millennials believe life insurance is both important and something they should possess, the group is not likely to complete the purchasing process.
During a recent interview with Financial Advisor, LIMRA president and CEO Bob Kerzner said that Millennials are increasingly becoming a priority for insurance companies. While Kerzner believes that a number of factors have kept that generation from purchasing life insurance so far, he expects that many will start acquiring it in the next decade. In order for companies to capitalize on movement, they will not only need to adjust the language around their product, but also offer uncomplicated policies that can be bought faster.
As much as Millennials will be a priority for insurance companies in the coming years, LIMRA’s research has led the association to conclude that there will be an even bigger priority: the growing Hispanic population in the United States. According to LIMRA’s fieldwork, the Hispanic population will increase three times as quickly as any other ethnic group over the next two decades.
Due to this, LIMRA believes it will be important to listen to and address this growing demographic’s concerns. Among those concerns are that a large majority (75 percent) of Hispanics feel that life insurance is too expensive and 49 percent are not clear on how much life insurance is needed and what plan a particular family might need.
Interestingly, while all these life insurance statistics reveal new trends, they also reveal a major point running through each: people are looking for clear information about life insurance.
At Gerber Life, we also aim to make understanding and purchasing life insurance as simple as possible. Use our interactive guide to identify the type of life insurance policy you may need.