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How can life insurers make people eager to buy coverage?

Life Insurance and Annuities
by Jan DeClue
Convertible life insurance is useful for many people.
Convertible life insurance is useful for many people.

One of the biggest hurdles life insurance issuers have had to overcome in the past few years - and which they've only achieved to varying degrees - is the fact that people simply aren't eager to buy such coverage these days, for any number of reasons. What can insurers do to overcome apathy and misconceptions on the part of the public at large?

Perhaps one of the largest concerns many industry experts have in this area is how to make it more personal, according to a report from Life Health Pro. The very nature of life insurance isn't particularly pleasant for people to think about, because it forces them to examine their own risk for mortality. And in the past few years, the process has become even less enticing because the "human element" seems to have been removed from it, at least in part. For this reason, it might be wise for life insurers to focus more on training people who deal directly with customers so that they'll be better equipped to put a warm face on something they might otherwise find troubling to consider.

What can be done?
In recent years, some of the conveniences that have found their way into the industry - automated payments, renewals, claims, etc. - might actually be hindrances to what makes life insurance appear valuable to some consumers, the report said. Bringing back the option to do those things by speaking with an agent, for instance, could provide a boon that insurers had not counted on. 

Further, the fact of the matter is that many studies over the last few years have shown that consumers don't really understand life insurance, or at least misconstrue how much it will cost them. This presents yet another opportunity for agents to better connect with consumers, because if they can begin talking in real terms about the actual costs associated with carrying such a policy, that could go a long way toward making a would-be buyer feel better about the purchase. That, in turn, could help to develop a positive relationship between company and client over the long-term.

The more life insurance companies can do to think outside the box on the services they provide, the better off they might be in terms of connecting with consumers who remain a little wary of their offerings. That, in turn, could help to seize upon the economic improvements putting Americans in better financial positions.



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