WINDSOR, Conn., April 6 /PRNewswire/ -- The head of LIMRA International, a
financial services research and consulting association, is urging the life
insurance industry to help American households bridge the wide gap between the
amount of life insurance they own and the amount they believe they need for
adequate family financial protection.
"LIMRA's latest consumer survey shows some important trends about
consumers and life insurance," said Robert A. Kerzner, president and CEO of
LIMRA International. "It also reveals a wide gap between the amount of
insurance that households own and the amount they feel they need for adequate
financial protection. The life industry has a clear obligation and opportunity
to try to fill this unmet need, and we have to do a much better job of
reaching consumers."
LIMRA conducted consumer surveys in 2004 that show that 44 percent of
American households believe they need more life insurance and 27 percent
expect to buy more insurance in the coming year, although no one can predict
how many will actually do so. LIMRA presented the findings at the Life
Insurance Conference in San Antonio, Texas.
LIMRA estimated that if everyone who said they plan to buy life insurance
in the coming year actually did, it would increase total coverage by $4.8
trillion and add an estimated $9 billion in new premium to industry revenues,
almost double the amount of new premium now written each year.
Kerzner noted that the survey found that 78 percent of consumers said they
do not have a personal life insurance agent and 73 percent do not have a
personal financial advisor or planner. Further, 29 percent of households who
do not have enough coverage said they have not been approached to buy life
insurance.
"This is not a product that people buy on their own, even though three-
fourths of Americans agree on the importance of life insurance for family
protection," Kerzner said. "Unless our industry can get in front of more
people to help them make a decision, this gap will remain unfilled."
Those surveyed cited many reasons for not buying additional life
insurance, including cost (74 percent), difficulty deciding how much to buy
(52 percent), procrastination (50 percent), worry about making the wrong
decision (43 percent) and preferring to put money in other financial products
(40 percent).
"If people don't understand our product, they won't buy it," Kerzner said.
"So we need to spend more time with people, to help them answer the questions
of how much insurance they need and what kind to buy. We need to help them see
how life insurance fits into their total financial plan.
"We have a challenge," Kerzner added. "To get agents talking to more
people, but also to encourage other financial professionals -- whether bank
representatives, stockbrokers, planners or others -- to talk with people about
life insurance.
"The good news is that people believe in the need for life insurance, and
many realize that they don't have enough," Kerzner said. "They expect to buy
more and they are interested in talking with someone about their needs. That's
a clear call to our industry to help fill that need."
About LIMRA International
LIMRA International is a worldwide association providing research,
consulting and other services to more than 800 insurance and financial
services companies in 60 countries. LIMRA was established in 1916 to help its
member companies maximize their marketing and distribution effectiveness.
Visit LIMRA International at http://www.limra.com.
LIMRA International seeks to send relevant news to journalists who cover
the life insurance and financial services industries. If you do not wish to
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