How To Free Stuck Insurance Shoppers

We've heard it before: Life Insurance ownership isn't what it used to be, even though consumers say they need it. Many have begun to shop for life insurance but they didn't complete the sale.

Why are there so many “stuck shoppers” and what can the industry do about them? LIMRA CEO Robert Kerzner gave his insights during the opening session of the 2018 Life Insurance Conference.

Consumers find the buying process burdensome, Kerzner said, and although they may recognize their need for coverage, they also overestimate the cost of that coverage.

In addition, competing financial priorities and long-time wage stagnation mean that consumers are having a tough time coming up with funds to buy life insurance, he said.

“Our challenge is how to bring the life insurance decision higher on the consumer financial scale,” he said.

A number of non-financial factors also influence the decision to put off buying insurance. One factor is increasing longevity, Kerzner said.

In 1900, 75 percent of people died before reaching age 65. Today, more than 70 percent of people live past age 65.

Survival rates from diseases such as cancer also are on the rise. As a result, death is not top of mind with most people and the “it's not going to happen to me” attitude is prevalent.

Life insurance used to be more a part of the American social fabric, Kerzner said, with parents openly discussing their life insurance purchase with their children.

"Maybe we need to get back to some of the old-fashioned stuff," he said.

Moving away from an emphasis on death benefits and toward a discussion on life insurance's role in retirement savings and in providing living benefits also will open the door to sales for a new generation of clients, Kerzner said.

“We've heard many stories about how life insurance has helped those in need,” he said. “But now we need to tell new stories.”

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on Twitter @INNsusan.

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