Since many people believe they don’t need life insurance, how do life insurance agents market wisely?
Prudential Insurance recently conducted an extensive set of consumer research that highlighted key reasons why consumers place a low priority on purchasing life insurance.
- Consumers believe that life insurance has a limited role. Many consumers view the role of life insurance as a resource to support their family in the immediate aftermath of a death, not as a means to permanently replace lost income.
- Consumers perceive high face amounts of coverage as excessive. Prudential found that most consumers believe that “adequate” individual life insurance coverage is two to three times their incomes, well below the industry-recommended eight to ten times ratio.
- Consumers believe that they don’t need to. Some consumers choose not to purchase individual life insurance because they participate in a group life insurance program. Consumers may also believe that their families are self-insured in the event they died. Many dual income families believe that if one wage earner dies the second wage earner will be able to support the family.
So – what’s an insurance agent to do? They market. And they market to the best life insurance prospects they can get: