4 Reasons Consumers Don’t Buy Life Insurance (and How to Overcome Them)
LIMRA has just published a fascinating article about why consumers are not buying life insurance. As previously reported in this blog, study after study has shown the decline in individual life insurance. Industry statistics report that ownership is at a 50 year low and this decline can be seen across incomes and life stages. What is driving the downward spiral?
LIMRA suggests there are four primary reasons:
1. People have other financial priorities right now.
2. They think life insurance is too expensive.
3. They have a difficulty making the decisions involved in the purchase.
4. They put it off.
These challenges are nothing new to insurance marketers. The issue lies in how to overcome them. LIMRA suggests that behavioral economics offers the industry a new tool. In short, behavioral economics is the study of how decisions are made and the mechanisms that drive choice. In short, marketers need to develop strategies to overcome the obstacles preventing people from buying.
Some solutions proposed in the article include demystifying the cost of insurance, focusing on the positive and repositioning life insurance as a means to help consumers meet their financial obligations, adapting product design to different life stages and fostering engagement to make the decision process easier.
At Bodden Partners, we have been practicing these life insurance marketing principles for years. Our campaigns have lead to breakthrough results for our clients. If you would like to find out how we can help craft a custom solution for your insurance marketing problems, contact Mark Silverman for a free consultation.