WINTER 2021 9
Trends in the life market Having a moment
If the last 18 months have shown our industry anything , it ’ s that sudden changes can happen in real time and carriers and producers alike need to be nimble . Here are four trends in the industry with potential to make lasting impacts on business as usual .
Brian Vestergaard is Vice President of Product & Marketing for LifeSecure Insurance Company . See insurance differently with LifeSecure ’ s accident , critical illness , hospital recovery , final expense , term life and worksite long term care insurance products . Visit
YourLifeSecure . com for more information .
Plug into a hybrid sales approach You don ’ t have to look hard to notice the industry ’ s rapid shift to online sales and selfservice tools . Despite the increased digitization of the customer journey , there ’ s still a need for the human touch that producers provide . In fact , 41 % of Americans say they want to work with an agent to help them purchase life coverage 1 .
We ’ ve been advising agents to develop a hybrid approach to ensure the shift to digital doesn ’ t deteriorate the customer experience . Online sales platforms , virtual meetings , face-to-face visits and phone calls can all be used to create a personal pitch using your client ’ s preferred methods of communication — and a little personalization goes a long way toward creating stickier sales and richer client relationships .
A little personalization goes a long way toward creating stickier sales and richer client relationships .
Sales Growth Since 1983 , LIMRA , Sept . 1 , 2021 5 Ibid
Motivated millennials
About one in three Americans say the COVID-19 pandemic has made them more likely to buy life insurance — and interest is highest among Millennials at 45 % 2 . That motivation translates to opportunity when you consider they are at an age when : Getting married and establishing a family creates new financial priorities Entering peak earning years and having highest concern about falling into a rough financial situation 3 They ’ re likely able to lock in the coverage they want at an affordable price LIMRA estimates there are 31 million uninsured Millennials who need life insurance
Term life is having a moment We ’ ve gotten a clear message from the past year : the growing motivation to buy across all age groups is driving results . Total U . S . individual life sales opened 2021 with some of the largest quarterly sales increases since the 1980s while term life is having a breakout year of its own . Term life posted the strongest growth in two decades in 2020 and Q1 2021 sales . First half of 2021 held a 22 % market share as sales by new premium increased 8 % with two-thirds of carriers reporting an increase 4 .
Keep it simple
Consumers want an easier life insurance process and carriers are listening , as many new products balance convenience and affordability . Think straightforward coverage , simplified underwriting ( no medical exams !), a streamlined e-application process with less paperwork and fast policy decisions . Nearly half of Americans say they are more likely to buy life insurance using simplified underwriting , including 47 % of Millennials 5 . With greater accessibility and renewed interest , there ’ s no better time for your clients to act than now .