Many field reps note that the sagging economy has had an impact on consumers’ attitudes towards risk.
“What’s a little different now is clients are looking for guarantees,” says Bob Kaiser of Kaiser Financial Group, Inc., Fanwood, N.J.
Kaiser says people now have a better understanding that interest rates fluctuate and that mortality charges and expenses can change–his clients want to know what their premium will be regardless of these factors.
Insurance companies have responded to these demands with the development of guaranteed products–most notably, through offering secondary guarantees on universal life products.
“There’s a shift in product,” says Kaiser. “If you’re buying insurance for a death benefit purpose, I feel that UL with the guarantees are just more competitive.