Consumers Want CI Offered In Hybrid Policies
We’ve heard or read how critical illness insurance sales continue to grow and are poised to explode. But what will tip us into that realm of explosive growth?
Some observers point to the worksite as the best channel to increase penetration, especially to middle market consumers who would benefit the most from this coverage.
Another avenue to consider is product design, according to recent findings from consumer focus groups conducted by LIMRA International, which reveal that consumers would seriously consider a product incorporating benefits of several types of insurance including life, disability income and long term care.
Consumers do recognize the need for coverage like CI insurance, but they must balance it with the need for other products. Many can think of a relative or friend who suffered a serious illness and subsequently incurred hefty out-of-pocket costs. They also understand the importance of DI insurance, and more are thinking about LTC insurance due to both personal experience and information in the popular press.
Yet, debt reduction is one of middle America’s top financial concerns, according to LIMRA research. This makes it difficult for consumers to afford all the types of coverage they need.
Here is the quandary: The industry is asking people to spend what little disposable income they have on an increasing number of products, each touted as being crucial to their financial security. They must make choices.
The industry can make those choices easier by offering hybrid or conversion products that provide multiple coverages for a lower premium than buying each product separately. In fact, focus group participants themselves suggested such an approach, indicating they recognize the need for different coverages but can’t afford them all.