5 Ways Life Insurance Sales Have Changed Due to COVID
- People are more serious about buying than ever.
- Prices are on the rise.
- Physical exams are being bypassed.
- Life insurers are asking new questions on applications.
- Traveling overseas could cause approval delays.
With the arrival of Covid-19, people have been thinking more about their financial futures and how secure their families are.
In fact, 77% of Americans admit to feeling anxious about their current situation. Many life insurance carriers have reported double-digit increases in the number of life insurance policies they’ve sold during the pandemic, as compared to last year.
An escalation in sales is always a good thing, but along with COVID-19 came a shift in how consumers shop for life insurance.
This change puts you in a unique position to meet your prospects where they are and engage with them in the way in which they’re most comfortable.
Let’s take a look at some of the changes that have happened in the last year and how you can leverage them to best help your clients.
What’s different about life insurance sales?
1. People are serious about buying
As the previous statistics show, many people are looking at their future a little more seriously than in the past.
What does this mean for you?
Here’s an example: You would think differently when going to a car dealership on a mission to find your next vehicle as opposed to just browsing through the lot if you knew tomorrow you were selling your car, right?
Bottom line: People are ready to buy so you need to be ready to answer their questions and provide them with the solutions that meet their needs.
2. Prices are on the rise
Some prospective buyers may be on the fence when it comes right down to pulling the trigger and purchasing life insurance. They’re more interested than they’ve ever been but talking to an actual producer makes it serious.
They wonder if buying during a pandemic is a good idea. It is and you can let them know one of the most compelling reasons.
Take a non-pushy tone to let prospects know that some carriers are currently raising their prices and now’s the best time to purchase life insurance before the rates go up even more.
3. Physical exams are being bypassed
Back in the “old” days (pre-COVID), most carriers required your prospect to have a paramed (exam and labs) in order to help determine if they could qualify for the coverage. No one enjoys being stuck by a needle or providing a urine specimen, not to mention the inconvenience factor.
And it was a cumbersome, time-consuming, paperwork-filled process.
In today’s climate, it’s just not practical to require a face-to-face physical exam for the healthiest applicants.
In the future, more and more carriers will begin requiring this again, though it’s expected that many will make the shift to a digital-based option that uses personal details such as prescription databases and electronic health records to take their place.
There are a few caveats, however.
If your client wants millions of dollars in coverage, if they’re older, or if they have health issues, a medical exam may still be required.
It’s also predicted that the requirement may come back if carriers start to see a higher number of claims than they bargained for on policies that bypassed the exam.
Time will tell, but for now, you can use the lack of a medical exam as a selling point when speaking to younger, healthier prospects.
4. Life insurers are asking new questions on applications
Since the purpose of a life insurance application is to assess risk, it’s not shocking that asking questions about COVID-19 is standard procedure.
Obviously, they’ll want to know if your prospect has been diagnosed with the illness or if anyone in their home has been.
And you’ll have to prepare them that, if they answer “yes,” their application could be postponed.
5. Traveling overseas is risky
Another factor that could cause a prospect or client’s application to be postponed is international travel.
Unlike overseas travel in the past (unless it was to certain dangerous areas), a carrier will now likely require them to be back in the country and quarantine for a period of time before their application will be considered.
Leverage these changes to better meet client needs
In these changing times, it’s more important than ever to meet your prospective client’s – and loyal client’s – needs.
Help people understand what these changes mean, reassure them that obtaining life insurance is a necessity and that now is a prime time for them to buy. Digital applications combined with exam-free underwriting requirements for some will make that process that much easier and quicker.
Don’t forget about the support you need, either. If you don’t have a life insurance General Agency’s support, get in touch and let’s talk about how the relationship can help you grow your business.