What Consumers Really Think About Insurance

What Consumers Really Think About Insurance

 In Insurance

Agents need to understand what their customers are thinking about insurance in order to know how and when to best help them with their needs. Insurance customers have changed, and aren’t as loyal as they used to be. The churn rate for customers is rising, and insurance customers are looking for “customer‑centric” interactions. That means that understanding, interaction, and even a relationship are some of the things that customers want from their insurance providers. Agents need to know where their customer is in the decision process, as well as what’s going on in their lives to be causing a particular insurance decision to be made.

In addition to knowing what a customer wants from their agent, agents need to know what consumers are thinking about insurance in general. It turns out, more than anything else, consumers really want convenience. Near the top of the list of what consumers desire is being able to get life insurance without a medical exam and the ability to research insurance options through social media and websites. Overall consumers feel better about their economic situation and have a more positive financial outlook than they did in 2017. With a better outlook, what are consumers thinking about when it comes to insurance, as well as what insurance coverages they do or don’t have?

Comfortable Retirement

The top financial concern for consumers remains affording a comfortable retirement. With that in mind, just over 40% of Americans said that they were extremely concerned with having enough funds for retirement. Additionally, 20% said it was their top financial concern.

A vast majority, over 90%, believe that a family’s primary wage earner needs to own life insurance. A little over half, 60% of adults, have life insurance, either a personal policy or one through work. From those who have life insurance, 20% say that they do not have enough. More than a third of households report that if the primary wage earner died they would feel the financial impact within 1 month.

Over 60% of people don’t buy life insurance, or don’t buy more life insurance, because they have other financial obligations that are priority. While 20% of those who don’t have life insurance say they need coverage.

Convenience

More and more insurance customers are looking for convenience. For those researching life insurance options, about half of adult consumers visited a life insurance company website or searched for information online. In fact, a rising number of customers, almost 30%, say they would research and buy life insurance online. Already, nearly one-third of consumers have purchased, or attempted to purchase, life insurance online. Just make sure that your online information is current. 67% of consumers report that they would not do business with an agent who has an out-of-date website.

Along with the convenience of researching life insurance, customers are also looking for an easier way to purchase life insurance. A full 50% of consumers say that they are more likely to purchase life insurance if it is priced without a physical examination. 72% of customers stated that “fast and easy” was the benefit they enjoyed the most about simplified underwriting. Consumers also feel that no exam life insurance policies have more transparent pricing and risk classifications, as well as being objective and unbiased towards any one group. A small percentage felt it helped them avoid meeting anyone in person and being poked and prodded.

Insurance agents can make a major impact on the convenience a customer feels. Be prepared to provide your customers with comprehensive information, answer their questions about policies, coverages, and costs. Customers want this information without waiting, multiple phone calls, or trips to an office. They want to access information quickly and easily. Researching insurance often feels stressful for consumers, provide some relief with the right information at the right time.

Financial Advisor

While 50% of consumers want a primary financial advisor, only 37% of Americans currently have one, with another 14% looking for one. Broken down into age groups, 40% of Boomers have a primary financial advisor, while only one-third of Gen Xers and Millennials have one.

Other top financial concerns for consumers include disability income and medical expenses. A third of workers are concerned about becoming sick or disabled and thereby unable to work, yet only 20% of workers have disability insurance. Similarly, almost a third of people are worried about needing long-term care, but only 15% have long-term care insurance.

Insurance is a highly competitive marketplace. That’s why ASPECT Management is always ahead of the curve. We offer our agents innovative ideas, and programs tailored specifically for them. We are the senior market specialist with an incredible offering of insurance carriers and products. Contact us today to see how our support allows agents to better focus on servicing their clients.

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Final expense life insurance can be used by the beneficiary designated as needed rather than being limited to specific funeral services and providers. Final expense life policies will have a lower face value than most traditional term or whole life policies as they are intended for a specific purpose of covering those final costs rather than providing comprehensive support for surviving family members. This type of policy generally doesn’t require a medical exam, but premiums will be higher the older you are, and some benefit payouts may be limited during the first few years of coverage for those with significant health issues. Reducing or skipping premium payments will impact the amount of interest paid and may impact how long the policy lasts. Accessing the cash value of a policy will reduce the available cash surrender value and the death benefit. Policy guarantees are based upon the claims-paying ability of the issuing life insurance company.

When choosing a life product, make sure that life insurance needs are met long-term, especially if personal situations change — for example, marriage, birth of a child or job promotion. Weigh the costs of the policy, and understand that life insurance, and long-term care coverage linked to life insurance through riders, has fees and charges that vary with sex, health, age and tobacco use. Riders that customize a policy to fit individual needs typically carry an additional charge. The payment of long-term care rider benefits, as an acceleration of the death benefit, will reduce both the death benefit and cash surrender values of the life policy. Additionally, policy loans and withdrawals will also reduce both the cash value and the death benefit. Care should be taken to make sure that life insurance needs continue to be met even if the rider pays out in full, or after money is taken from the life policy. There is no guarantee that a rider will cover the entire cost for all of the insured’s long-term care, as this may vary with the needs of each insured.