September Is a Great Time To Promote Life Insurance

September is Life Insurance Awareness Month (LIAM), when, for 30 days, the insurance industry and the nonprofit Life Happens come together to educate consumers about the important role life insurance plays in protecting families. In a nationwide campaign that addresses the growing life insurance coverage gap in the U.S., LIAM dispels myths and misconceptions surrounding life insurance by presenting consumers with the facts.

If you’re a life insurance agent, September can be a great time to start building your life insurance book by tapping into the resources that LIAM offers. The following are key highlights from research presented by the Life Happens organization and the Life Insurance Marketing and Research Association (LIMRA) that can help you in creating a life insurance marketing strategy for raising awareness for this valuable coverage.  

Misconceptions:

· 46% of Americans say they have put off purchasing the coverage they know they need, in part because they view the buying process as overly complex and intimidating.

· 29% of American workers believe the coverage they get through work is enough. However, research shows that the median life insurance coverage offered at the workplace is either a flat sum of $20,000 or one year’s salary — far below what most dual-income households typically need financially to live.  

Affordability:

·Younger consumers who do not yet have a spouse/partner or dependents often believe they can put off buying life insurance until they are older. However, life insurance is significantly less expensive when purchased at a younger age.

·More than half of Americans overestimate the cost of life insurance, believing a policy to be three to six times more expensive than it really is. The fact is, the cost of term life insurance for a healthy 30-year-old is around $160 per year. Yet 44% of millennials estimate it to be more than six times higher — at a costly $1,000.

·For some individuals, approaches to securing more affordable coverage can include starting small and increasing coverage limits over time, buying as much coverage as possible while young and healthy, starting with term life, locking into a renewal guarantee, and applying any applicable premium discounts.

COVID-19:

·Since the onset of COVID-19, 36% of Americans said they plan to purchase life insurance this year, with 48% of millennials indicating they are likely to buy coverage before the end of 2021.

·LIMRA research shows that the pandemic has greatly raised consumers’ awareness and interest in life insurance as they realize whom they have a responsibility to provide for. 

·The pandemic has accelerated the adoption of simplified underwriting. According to LIMRA, 48% of consumers say they are more likely to buy life insurance using simplified underwriting.

Financial:

·42% of households said they would face financial hardship within six months if a primary wage earner were to die unexpectedly, with 25% suffering financially within just 30 days.

·Misperceptions about cost, coupled with prioritizing other financial needs, have put many families needlessly at risk of financial hardship should a wage earner die unexpectedly. Today, more than ever, it is necessary for insurance professionals to educate consumers on the importance of creating a budget that includes life insurance. 

To learn more and to access life insurance resources, visit the LIAM website and watch the LIAM video. As a supporter of LIAM, you can also visit the LIMRA research website for videos, factsheets and infographics.

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