Consumers who receive a financial needs analysis are more likely to buy life insurance, and to buy larger face amounts, than those who don’t receive an analysis.
LIMRA, Windsor, Conn., published this finding in a summary of results from a 2011 LIMRA U.S. Life Insurance Buyer-Nonbuyer study. The report explores how consumers’ experiences during the life insurance shopping process influence whether they will buy or not. LIMRA surveyed only those consumers who “seriously shopped” for life insurance.
In total, 6,666 households seriously shopped for life insurance. Another 3,581 bought and 3,085 did not buy after shopping. The results were weighted to represent the U.S. population.
Of the 41% of respondents who said they received a financial needs analysis, 73% bought life insurance, the average face amount totaling $423,000. Of the 36% of respondents who said they did not receive a financial needs analysis, 49% did not bought insurance, the average face being $215,000.
Of the balance of respondents (23%) who said they did not receive a financial needs analysis, but had one in the past, 50% said they bought life insurance, the face amount averaging $337,000.
In the 49% of cases when producers recommend an amount to buy, the study adds, 70% bought life insurance, with an average face amount of $427,000. In the 51% of cases where there was no recommendation, 57% of respondents bought, the face amount averaging $260,000.