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What is Working for Consumers?

There is certainly a lot of important information about what is NOT working to connect with consumers. This is obviously important because bridging the knowledge gap has been shown to help elevate the number of Americans with life insurance coverage of some kind. However, there is also value in understanding what is working for consumers. This helps us focus potential clients on topics that are most likely to motivate them to learn more and keep up with the evolution of products.

The 2019 Insurance Barometer Study findings help us take a closer look at what consumers are positively responding to and what’s working in the industry.

Simplified Underwriting

Ah, the ease of simplified underwriting! Life insurance experts say the traditional understand process can take anywhere from 2 – 12 weeks yet simplified (or “accelerated”) underwriting can take less than 24 hours, depending on the insurance company and applicant*. The current insurance barometer study found that this may directly impact a consumer’s likelihood of completing a life insurance purchase. 63 percent of those surveyed were interested in purchasing because they are drawn to the speed and ease simplified underwriting offers. In addition, over 50 percent of these interested parties were also motivated by the risk and price transparency (57%) and the unbiased and objective application process (57%).

Combination Products

According to data from the American Association for Long-Term Care Insurance, about 55,000 people purchased stand-alone long-term care insurance in 2018 while 295,000 people purchased combination products (long-term care benefits linked to life insurance policies or annuity contracts). And it seems the markets for life insurance products that combine other benefits is still growing. Of the roughly 42 million Americans represented in the 2019 study, one in every five said they are “very” or “extremely” likely to buy a combination product. Over half stated that they were at least interested in the combination life insurance product and where “somewhat likely” to purchase one. The top reasons for this appeal are attraction to the flexibility of the product, the ability to potentially address multiple financial risks simultaneously, and a view that the combination products lowers the possibility of a long-term care policy depleting savings.

For more information on providing your clients with options like simplified underwriting and combination possibilities, contact Simplicity Life today! 800.921.3100

 

SOURCES:

2019 Insurance Barometer Study, Life Happens

American Association for Long-Term Care Insurance

*Accelerated Life Insurance Makes Life Easy, Investopedia

950537-092019

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Disclaimer

The information contained herein is for general information purposes only. Simplicity Life is not to be held responsible for the accuracy of this information. Neither Simplicity Life nor its employees provide tax or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser.

The information, statistics, and opinions reported herein are from sources believed to be reliable. However, Simplicity Life and the author of this blog do not guarantee the truth, accuracy, and reliability of any source, fact and/or statistic cited and no do necessarily agree with any opinions expressed by such sources.

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