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Life Insurance: Why Aren’t They Buying...and What Can You Do About It?

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September will once again serve as Life Insurance Awareness Month, and it remains a golden opportunity for life insurance producers to dispel the misinformation that hinders consumers from obtaining the coverage they need.

Let’s take a closer look at the excuses consumers give for not buying life insurance. They generally cite competing financial priorities, not knowing what kind of coverage they need, or thinking it’s a luxury they can’t afford. It’s your job to show them why they need it, what kind of coverage works best for them and that they can afford it.

A recent LIMRA/LIFE Foundation study found that consumers overestimate the cost of life insurance by as much as three-fold. That is a big problem. Another big problem? Consumers who need coverage — or adequate coverage — are not being approached. Sixty percent of consumers don’t recall being approached to buy life insurance in the last two years. Of those who were approached, 35% who didn’t buy said the agent never followed up with them. And about 30% admit to not knowing enough about life insurance to make an educated decision — and that all too often scares them off from buying it at all.

The good news is this really presents an opportunity. Producers have the power to change all of these factors that have led to historically low levels of life insurance coverage among Americans, and they can be well-compensated for doing so.

They also have a lot of help. The nonprofit LIFE Foundation, which coordinates Life Insurance Awareness Month, offers a bevy of resources to help you reach and educate consumers. Today (Monday, Aug. 6), the LIFE Foundation is launching its LIAM 2012 Producer Toolkit. Here’s what it includes:

  • A flyer and video featuring the story of Buddy ‘Cake Boss’ Valastro, master baker, reality TV star and this year’s LIAM spokesperson.
  • Sales ideas
  • Free downloadable flyers, eCards and embeddable videos
  • Various themed-marketing toolkits
  • A social media planning toolkit

Beyond the toolkit, the LIFE Foundation is also offering a free LIAM 2012 Producer Webinar on Wednesday, Aug. 8, at 1 p.m. ET. The webinar will provide a preview of LIAM 2012 programs and the opportunity to learn transferable sales ideas from agents who have enjoyed great success in past LIAM campaigns.