Are your sales where you hoped they would be? Or…are you scrambling to catch up?
Well here we are, entering the last quarter of 2011.
LIMRA has just published the results of a study they conducted on the underinsured households in the United States. The new report, “Trillion Dollar Baby Growing Up,” estimates that life insurance sales would increase $9.5 trillion if the 48 million underinsured households bought the amount of life insurance coverage they said they needed.
To arrive at these numbers, LIMRA calculated the size of the underinsured market based on (1) the number of U.S. households that readily admit they are underinsured and (2) the number of households that think they might buy life insurance in the next 12 months.
The study found that there are more Generation X households thinking of buying life insurance than Generations Y and baby boomers. While the likelihood of buying life insurance does not vary by income level, the results of the study concluded that there are more than double the number of households with incomes of $35,000 to $99,900 (17 million) that are likely to buy life insurance.
So what keeps these underinsured consumers from buying life insurance? LIMRA’s study revealed three important factors:
• Competing financial priorities: Consumers need help in figuring out how to fit life insurance premium into their budgets—especially during this tough economy.
• Lack of knowledge: The 44 percent who said they need life insurance also said that they haven’t bought because they don’t know how much or what to buy and worry about making the wrong decision.
• Procrastination and reluctance to initiate buying: More than one-third of these consumers say they have not been contacted by an agent.
Clearly, there is a large market interested in buying life insurance, and now you know who they are!
Now, do you need some guidance on what to sell? LIMRA’s research says that combination products jumped 62 percent in 2010, reaching $1.2 billion.
Over the past few years, most of the growth in the combination product market has come from linked benefit products. In fact, linked benefit products grew 60 percent last year, representing 45 percent of policies sold.
LIMRA found that buyers in their sixties continue to be the biggest portion of in-force policies. However, acceleration products are gaining traction in the younger market and with higher face amount policies. The overall trend in average face amount has steadily increased for acceleration products, but stayed level for linked benefit products.
According to the study, female policy owners account for almost 65 percent of in-force policies. The biggest gap between genders occurs between issue ages 75 and 79.
So now all you need are fresh ideas about prospecting and marketing with more details about products. In this “Agent Practice Inventory” issue you will find a cache of articles that should be useful when planning your fourth quarter sales strategy!
Sharon A. Chace
Editor, Broker World