The insurance industry is notoriously behind the times. But consumers have changed how they shop as well as how they think about life insurance. Savvy life insurance producers adjust their approach to increase sales and stay on top.
Editor’s note: This post was originally published on 7/7/16 and has been updated for accuracy and comprehension.
The way your prospects look at life insurance will greatly affect how you sell life insurance policies.
Times have changed and consumers view life insurance differently now than when you started in the industry.
It’s important to stay up-to-date on these ever-changing trends.
Leverage the knowledge you have about consumer behavior to increase your sales success stories.
According to LIMRA (the Life Insurance Marketing and Research Association), 6 in 10 people own life insurance.
And for those who don’t have it, many agree they need it.
Understanding these statistics about how and why people are purchasing life insurance can inform your choices as you approach prospective clients.
Here’s what you need to keep in mind.
As many as 132 million Americans rely on life insurance to protect their family security.
The major reasons given for owning life insurance include:
Many Americans understand that they need more coverage than they have.
The reason that people forego purchasing the coverage they need is primarily financial.
On average, consumers estimate the cost of life insurance to be twice as high as the actual price.
Here are consumer estimates of a policy actually costing $160 per year:
The closer retirement gets, the more people begin to worry about what it will look like.
These very real concerns can make it difficult to see the important role of life insurance in retirement planning.
Most Americans understand that age and health can affect the cost of their coverage.
Your job is to educate and inform.
It’s important for your prospects to know all the factors used to determine how much they have to pay.
Here are some of the important factors to consider:
Life insurance research statistics give you an inside look at what your prospects are thinking and feeling.
This allows you to offer the solutions they need.
Here are some of the biggest selling points you can hit when you’re discussing life insurance with prospective clients.
This gives you the opportunity to swoop in with your personal touch and show prospects that you’re there to guide them through the process and beyond.
Ask your prospective clients what life would look life if the primary breadwinner in their home were to pass away.
Would they be able to maintain their current lifestyle?
It’s not a pleasant thought, but it can help drive home the fact that life insurance is necessary.
Numbers are hard to dispute.
Sometimes, seeing a concrete number is all it takes to make someone comprehend their need for life insurance coverage.
When you’re familiar with how consumers see life insurance, you’ll better understand how to sell life insurance policies.
You’ll be able to counter sales objections and common misconceptions about the value of life insurance – and then help the consumer navigate the benefits of purchasing a life insurance policy.
Which of these statistics do you think will have the most impact on your prospective clients?