Growing Economy Creates Life Sales Opportunities: LIMRA
Now that the U.S. is coming out of a recession its “the best time to look for opportunities,” said Lucian Lombardi here at LIMRA Internationals annual meeting.
Lombardi, vice president of product and distribution research for LIMRA, based in Windsor, Conn., conceded that although it is an auspicious moment for the sale of life insurance in terms of the economy, life insurance continues to be a product that is sold and not bought.
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A survey by LIMRA confirms that consumer attitudes toward the product changed little after 9/11. The reason sales increased after 9/11 is more likely because agents and producers were more motivated than because consumers suddenly realized a need, Lombardi said.
But, opportunities remain and one is in young families, he said. Throughout the 90s young families were growing. Now, although boomers are leaving this segment faster than Generations X and Y are entering it, there is a growing number of very young families, with children under six years old.
To penetrate this market, one must understand what is behind the reluctance to buy, Lombardi said. Many consumers do not have coverage, and many of those who do have only group coverage, which often is not enough, he added. The need is clear to consumers, yet it has not become a fundamental item. Part of the reluctance is the perception of priorities, he said.