Rising Demand for Life Insurance in a Post-Pandemic World
In the wake of the COVID-19 pandemic, demand for life insurance has surged. As people have been forced to confront their own mortality, their attitudes toward health and wealth have undergone a shift. Now, they are looking for life insurance to help them support their goals of living longer, healthier lives.
The Microsoft Work Trend Index found that 52% of North American workers now care more about their wellness than their work. In addition, a Life Insurance and Marketing Research Association (LIMRA) survey revealed that more than half of Americans are now more inclined to buy life insurance.
Life Insurance and Health
During the COVID-19 pandemic, the likelihood of a person’s recovery was significantly dependent on their prior health condition. This realization has led many people to re-evaluate their lifestyle choices and make changes to improve their health.
According to a CVS Health survey, 77% of people now take health and wellness more seriously. This heightened awareness has led many to seek life insurance to protect their families financially in the event of an untimely death.
For life insurance carriers, this presents an opportunity to take a more proactive approach to customer health and wellness. By offering policyholders tools, resources, and incentives that help them live longer and healthier lives, carriers can improve customer satisfaction and retention and reduce claims payouts.
It’s a win-win proposition: when people live longer, healthier lives, they’re better able to provide for their families, pursue their goals, and contribute to society. And that’s good for everyone, from the individual policyholder to the life insurance industry.
Life Insurance and Wealth Protection
With the recent market volatility and record inflation rates, people are increasingly aware that the risk of losing what they’ve worked so hard to achieve is very real. And yet, LIMRA reveals that 60 million American households do not have life insurance, or their coverage is inadequate.
Some suggest that life insurance carriers need to take a more proactive approach to making insurance available to people who really need it. One way to sell more life insurance, say experts, would be to accelerate efforts to digitize and streamline the application and underwriting process. People would get the coverage they need without enduring the typically lengthy, in-person process.
Life Insurance and Student Debt
Today, the United States has $1.748 trillion in student loan debt. This represents a significant financial burden for many Americans, particularly young adults just starting their careers.
The pandemic exacerbated the issue, as many graduates found themselves unemployed or underemployed. Skyrocketing inflation and market volatility have only added to the challenges they face.
When it comes to life insurance, student debt is often overlooked. But it is a liability that needs to be looked at closely, since not all student debt is created equal.
For example, federal student loans are typically forgiven if the borrower dies or becomes completely disabled. On the other hand, private student loans might have different terms, which makes reading the fine print essential. Otherwise, if a borrower passes away and has a co-signer, the debt may become the responsibility of the surviving family member. If no co-signer exists, their estate may be used to pay off the debt.
As with all debt, consumers must understand their obligations and ensure they have adequate life insurance coverage to protect their loved ones. Life insurance carriers can help by offering products that consider the unique needs of borrowers with student debt.
Life Insurance: Raising Awareness and Educating Consumers
Although life insurance is one of the most important financial products people can buy, awareness remains low among specific population segments. For example, Life Happens recently held its 2022 Life Insurance Month campaign to raise general awareness but with an eye toward the Hispanic community.
This is significant because, as noted by LIMRA, nearly 60 percent of Hispanic adults lack life insurance coverage, and 51 percent say they need it.
To raise awareness in the Hispanic community, Life Happens, which often relies on celebrities to demonstrate authenticity, chose Roselyn Milagros Sánchez Rodriguez as their campaign’s spokesperson. Rodriguez, who was born in Puerto Rico, is a singer, songwriter, dancer, actor, and producer.
Life Happens also produced Spanish-language versions of videos and other campaign materials to support their message.
This targeted approach is essential to increasing awareness and education around life insurance. By reaching out to specific communities and offering materials in their native language, organizers can help demystify the product and make it more accessible.
Life Insurance: Raising Awareness and Educating Consumers
Life insurance carriers must evolve beyond their traditional, passive approach if they want to be relevant in today’s environment. This means taking a more proactive stance, embracing innovation, and engaging with consumers meaningfully.
This includes means being aware of the unique needs of different segments of the population and tailoring products and outreach accordingly.
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