Life insurance industry analysts anticipate an increase in consumer demand for life insurance policies through 2021 and afterward. Industry analysts say that as nationwide vaccination programs take effect, more consumers will start earning more and looking to buy life insurance products in the wake of the Covid-19 pandemic.
Life insurance agents are doing a majority of business remotely and with less personal interaction due to social distancing mandates and pandemic precautions. Most transactions are concluding via automated systems that accelerate the underwriting process, so customers are expecting quick results.
Fortunately, the cost of buying life insurance is stabilizing after a year of uncertainty due to the global COVID-19 pandemic. Consumer interest in life insurance products is on the rise, and that is good news for the agents selling them. The wide selection of life insurance types, annuities and other life products generally overwhelms most consumers who struggle to understand how they work.
Most curious consumers focus on simple whole life products and are unaware of various other whole life and term life products. Many also do not understand how different types of annuities work, but that can become an opportunity for proactive life insurance agents.
While many industry analysts anticipate a boost in demand for life insurance policies through 2021, proactive agents are needed to take full advantage of a latent demand that likely will become more prominent.
Misperceptions and reduced communications from life insurers are causing many consumers in the United States to forgo the benefits of life insurance protection, according to the J.D. Power 2020 U.S. Life Insurance Study. Senior consultant of insurance intelligence at J.D. Power, Robert Lajdziak, says a “significant perception problem” exists among consumers that life insurance is costly and overly complex to understand.
The lack of consumer confidence in making smart choices in available life insurance coverages and related tools makes it more important for agents to reach out to prospective customers and provide good guidance on life insurance products.