When life insurance producers like you put the data to work to improve your prospecting and sales strategies, you’re setting yourself up for success.
Understanding relevant statistics helps you to monitor the progress of your industry as a whole, why consumers are purchasing life insurance – and why others aren’t.
This information allows you to examine your life insurance business and make changes that will put you in the best position to meet prospects and clients right where they are, offer the solutions they need, and place more cases.
Here’s what you need to know.
Life Insurance Producers Take Note
Reasons Consumers Are Buying Life Insurance
The following stats explain the motives behind life insurance purchases.
Covering the cost for burial and other final expenses is the #1 reason people are buying life insurance, to the tune of 84%.
The next greatest motivation is to pass an inheritance down to future generations, at 66%.
62% cite replacing an income.
57% want to bolster their retirement income.
50% would like to pay off their mortgage.
Reasons for Not Buying Life Insurance
There’s a wide variety of reasons that consumers give for not purchasing life insurance.
Here’s a breakdown:
67% of Americans say they haven’t purchased life insurance because they have other priorities.
65% say it’s too expensive.
56% think they don’t need it.
52% are unsure about life insurance products, what they need, and how much. (In the case of Millennials, this number jumps up to 58%.)
43% plan on it but simply haven’t gotten around to it yet.
42% consider it too morbid to even consider.
35% don’t have confidence in life insurance companies.
35% have never been offered coverage.
34% say they don’t trust life insurance producers.
31% don’t qualify.
25% feel they already have sufficient coverage.
General Stats for Life Insurance Producers
At the end of 2020, 54% of Americans had life insurance. This was a drop from 2019, when the number was at 57%. Since 2011 (63%), it has dropped 9%.
40% of those who have life insurance wish they had purchased their policies much earlier in life than they did.
It’s estimated that as many as 70% of those who have life insurance don’t have enough.
In fact, only 30% of those insured have a sufficient amount of coverage at all.
50% of Americans overestimate the cost of life insurance by as much as 3x the actual cost.
80% of those who purchase life insurance consider it an important financial planning topic for their family.
50% of all people who are in the market for life insurance have a common goal: Underwriting that is convenient, quick, and simple.
26% of consumers look to Facebook to validate a life insurance producer before they’ll work with them. Wondering about other social media platforms?
- 9% will check you out on Twitter.
- 9% will look for you on LinkedIn.
- 17% will try to find you on YouTube.
80% of American consumers are very open to conducting transactions digitally.
Make Data-Driven Strategies to Place More Cases
Statistics are great. They point out areas where you can take action as a life insurance producer to help prospects and clients where they need it most.
But maybe you’re thinking, “This information would be more helpful if I had time to strategize and implement new ideas, but I’m swamped.”
Choosing to partner with a life insurance General Agency will not only provide you with the training and education you need to stay on top of your game with the latest trends in your industry, but they also provide you with the “back office” support that allows you to focus on your areas of expertise.
Let’s talk about how Leisure Werden & Terry can help you grow your life insurance business.