The last year has seen a growing number of people recognize the need for life insurance, yet policy ownership continues to decline. That’s according to the 2021 Insurance Barometer Study published by LIMRA and Life Happens.
Despite the decline, the COVID-19 pandemic continues to drive consumer awareness about life insurance. The growing ownership gap presents an opportunity for producers. With Life Insurance Awareness Month coming in September, now is the time to start talking to prospects and clients about the security provided by LI coverage.
Ownership At An All-Time Low
2021 marks the 11th year of the LIMRA/Life Happens study. The results show the lowest policy ownership numbers to date, a continuation of a drop that started in 2017. Roughly half of all American adults (52%) currently own a policy. That’s down 2% from last year and 11% from the 2011 high (63%).
Among those with coverage, 52% own an individual policy, 26% own a group (employer-provided) policy, and 22% own both. The second statistic, which shows a continuation of the decline in employer-paid life benefits, is particularly noteworthy. Fewer employers are offering LI policies, yet more people need/want coverage.
COVID-19 Drives Awareness
One of the biggest takeaways from the 2021 Insurance Barometer study involves consumer reaction to the COVID-19 pandemic. According to the study, 31% of consumers say COVID-19 has increased their interest in buying life insurance. Millennials made up 45% of this group, with Gen-Xers making up another 31%.
Those numbers are even higher for those who have contracted the virus. Forty-two percent of those who tested positive for COVID-19 have said they intend to buy a policy at some point in 2021. In contrast, only 33% of those who had not tested positive, but knew someone who did, are now more interested in buying a policy.
Not only did COVID-19 drive consumer interest, but it also drove sales. Roughly 13% of those who currently own a policy stated they purchased one for the first time in 2020. Financial concerns caused by the pandemic ranked high among reasons why many consumers have yet to buy life insurance.
Life Insurance Awareness Month
With September designated as Life Insurance Awareness Month, Marketing Corner will focus heavily over the next few weeks on LI marketing opportunities. Amidst an ongoing pandemic, legislative changes, and economic uncertainty, life insurance is more relevant than ever.
As part of our 2021 LIAM coverage, IAMS, Inc. is pleased to offer a robust sales package to agents and advisors. Our complimentary 2021 LIAM Sales Kit includes:
- Consumer-Facing LI Concept Pieces
- LI & Business Solutions Concept Guides
- Checklists, Factfinders, and Prospecting Templates
- Factsheets and Studies
- LIAM Social Cards and Posts
- Life Insurance Email Drip Content
- and More!
Click below or call (800) 255-5055 to request your complimentary 2021 LIAM Sales Kit.