September is Life Insurance Awareness month and this campaign provides a much-needed push for the American consumer to overcome misconceptions and create productive conversations about coverage options. As a financial professional it may seem difficult to begin these conversations when you have no idea where a potential client is starting from. The 2019 Insurance Barometer Study findings may have some insight into these talking points.
Education About Life Insurance Matters
The 2019 Insurance Barometer study showed a clear connection to lack of understanding of what life insurance is and a consumer’s potential to purchase it. Even though many are familiar with the idea of life insurance, the ins and outs are unknown, and that knowledge gap can create a delay in research and interest. For instance, when asked how much a $250,000 20-year term life insurance policy would be for a healthy 30-year-old, the median estimate was $500 which is actually more than three times the actual cost. This correlates directly the fact that the number one answer for not having life insurance is “it’s too expensive”. A misconception about cost is most likely the actual number one reason since so many of these consumers are tripling the cost in their estimates, and unknowingly so.
Consumers Use Social Media for Research
Predominantly Generation X and Millennial consumers are using social media when assessing financial professionals. 34 percent of that group say they would research financial professionals on social platforms and 62 percent of the 42 million consumers in the market for financial guidance are looking for information on products and services using social media sites. Given the diversity the newer generations are providing in the population of consumers, advisors should learn to leverage social media tools to help educate these groups and help them make found financial decisions. Social media is appealing to today’s pool of consumers because they feel connected to the content and through these channels, they often have the ability to read other consumer’s views on the topics. Therefore, engaging your current group of consumers may also be beneficial.
Addressing the needs of the consumer will help you reach a wider audience and create conversations that can help people connect with a financial resource they aren’t aware is available to them. For more information on educational tools and starting these conversations, contact Simplicity life today! 800.921.3100
2019 Life Insurance Barometer Study, Life Happens