How can it be that a nation of supposedly highly educated citizens has 68 million adults with no life insurance?
This number came from LIMRA International, Windsor, Conn., and it has been widely published in various media including National Underwriter.
Have we agents just pointed to the product? Have we not explained the virtues of owning life insurance? I am amazed at how many people have never heard of waiver of premium and don’t know about reduced paid-up coverage or extended term.
Perhaps the most shocking part about this situation is the number of agents who don’t take the time to explain the product. I’ve run into them and so have my customers. Could this be because the agents don’t know either? Or are the agents just in it for a quick sale and nothing more–to be order takers, not life underwriters?
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Lack of knowledge and understanding is a big problem, because it is so commonplace.
Check it out for yourself. With the next 10 people you meet, ask this question: Do you own any life insurance? Nine out of 10 will likely answer, “Sure, I have life insurance.” When they say that, remind them that that you didn’t ask “Do you have life insurance?” You asked, “Do you own any life insurance?” The next answer will probably be, “Yes, I have life insurance at work, and my employer pays for it.”
Then, you’ll probably say something like, “Oh, you have group term.”
The response will be, “What’s that?”
The truth is, many people don’t own–i.e., buy–any individual life insurance, and they don’t really understand what they do “have.” But they will say “I’m insured–through my employer’s plan–and besides, I have a 401(k) plan.” I hear that a lot when at group meetings for a new employer account and in one-on-one meetings with various individuals.