Nearly one in five Americans shop for life insurance through their employer, according to a new report.
LIMRA, Windsor, Conn., disclosed this finding in a summary of results from LIMRA’s U.S Life Insurance Buyer-Nonbuyer study, which looked at the life insurance shopping experience from the consumer’s viewpoint and how consumers’ shopping experiences influence whether they will buy or not. LIMRA surveyed only consumers who “seriously shopped” for life insurance over the past 24 months.
The study finds that nearly 20% who shop for life insurance go through their place of work. And 75% of workplace shoppers buy life insurance.
“More and more people are turning to their place of work to get the financial products they need,” says LIMRA Group Product Research Analyst Kim Landry in a prepared statement. “Clearly, the convenience of having the resource at their place of work coupled with the feeling of security felt by working with someone their employer has (implicitly) approved, are drawing consumers to this channel.”
The LIMRA report adds that 30% of workplace shoppers for life insurance say they shop because the product is offered to them at work. Workplace shoppers are more likely to be men than women (55% vs. 45%). More than three-quarters are married or living with a partner. And a majority have children under 18 in their household.
Workplace shoppers, the study says, tend also to be younger than those who shop through other channels. They also have higher average incomes than other shoppers and tend to have more investable assets.
When asked to provide their opinion of the producer they met, 8 in 10 workplace shoppers say their producer provides good information about the policy and is very knowledgeable about insurance in general. Nearly three-quarters believe they can trust their producer.
However, the survey adds, nearly half of workplace shoppers say their producer failed to follow up with them (a third of workplace shoppers who didn’t buy said that they were not finished shopping). And 4 in 10 workplace shoppers don’t think their producer considered what they could actually afford.
More than a third of the respondents say they didn’t receive enough product options.