3 reasons why consumers purchase life insurance
April 21, 2015
The life insurance business can provide many services to consumers. Life insurance is also a tough market to sell. Many consumers have the wrong perception about the costs and hurdles this field brings, but there is still a demand for life insurance and there are many reasons why.
Providing income in case of death
The death of a family member is a life event no one will see coming. A recent study conducted by the National Underwriter's Life Insurance Study found that 75 percent of life insurance agents clients sign up for this reason. Insurance broker Raymond Johns said that clients want to be reassured that they will be provided for after a loved one's death.
"Life insurance is the key ingredient for the safety of every family. It is an integral part of any financial plan," Johns said. "We who understand the power of life insurance need to spread the word ... so that [others] clearly understand how important it is for their financial peace of mind."
Pass on to further generations
As with the death of a loved one, consumers purchase life insurance in order to provide for their family's future. Guy Baker, managing director of BTA Advisory Group, said that when selling to a consumer, life insurance agents should point out it is a continual series that will help their family.
"We can sell life insurance as a product or part of a process," Baker said. "So we break the problem down into little decisions that lead to implementation."
When selling life insurance, agents should tell clients they are saving money for present and future generations
Saving for retirement
Many times, a consumer will buy life insurance to get their retirement plan situated. Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global, said that consumers believed the economy would help them out and they didn't need to start saving till their later years.
"There was a belief 20 years ago that 'I only need life insurance till I retire,'" Kerzner said. "People believed 'I'm going to have so much money because the stock market is going up.'"
This perception has changed, and more people have decided to start saving earlier. This will not only help you, but it will also assist your family.
Life insurance has many duties to perform. The more people know about these services, the more consumers will sign up.
