Although there is a lot of information widely available about life insurance, many people and various groups of the population are still uneducated about this very important part of life.
Baby boomers, seniors, Gen X, Gen Y and the Hispanic population are some of the key groups that are extremely uninformed about life insurance.
A January 15, 2007 article from The Insurance News Net, “The life insurance industry will only grow if we market to the gap,” explains how these key groups are being neglected in the industry.
“The Hispanic market, like the boomer and senior markets, is brimming with potential. But as insurers prepare to meet the needs of 77 million-strong American boomer and seniors (with their respective wide arsenal of customizable products and strategies), the retiree market, ironically, faces a gap between its own preparedness and the ability of advisors to supply the product. We certainly see advisors with the right tools. However, boomers and seniors are too uninformed.”
And these are not the only groups that are not getting adequate information about the importance of life insurance coverage.
“Analysts stress how the vast ‘underinsured and underserved’ U.S. population of boomers, seniors, Gen X (30-41), Gen Y (22-29) and the rapidly growing Hispanic market, will likely be the sturdy foundation of the long-term growth. Hence, the industry should not ignore these significant segments of the market.”
The research from financial services company, LIMRA, is quite alarming. They refer to the segments of the market mentioned above as the “middle market”
“28% of the middle-market who potentially have a need for insurance don’t have access to any relevant life insurance information; The entire middle-market population would first like to be educated on the appropriate type and amount of coverage to buy; 78% have no personal life insurance agent and 44% recognize the importance of needing adequate coverage.”
The need to provide information and coverage to these groups is something that insurance companies need to address.
“More than 20% of Gen X and Gen Y Americans (i.e. 15 million) have indicated that they would probably get single coverage within the next 24 months, proving the financial significance of these untapped markets. In total, these groups present a budding business revenue stream that is as lucrative as the retiree market.”
The population of the Hispanic community alone is expected to grow by 24 million within the next one and a half decades. This information is especially promising to the industry.
Life insurance companies and agents need to work to spread the news about the importance of life insurance to these key markets and groups. They need to dispel common misconceptions such as, Life insurance is too expensive and I don’t need life insurance, I’m only 32.
“The entire life insurance industry must do its homework, and subsequently create and roll out a wider range of choices for consumers. The bottom-line has always been the same: Sell the right product at the right time for the right cost. And it seems that all indicators are saying now is the right time to increase upfront communication with the right product.”
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