While COVID-19 has presented its own unique challenges, it has also served as an important backdrop that exacerbates challenges that exist outside of the virus and its complications themselves. More simply put, it has drawn our attention to potential problems (and opportunities) and placed them in a new light.
That’s why we think Life Insurance Awareness Month 2020 is especially important. In the midst of, arguably, the worst global pandemic the world has seen in more than a century, life insurance becomes a central focus in the minds of people who wouldn’t normally consider their own mortality or that of their loved ones*.
As a company in the life insurance space, we felt we would be remiss if we didn’t share helpful resources and information for our peers, our partners, our customers, and consumers alike in preparation for #LIAM2020.
*Source: McKinsey & Company interview with Policygenius CEO Jennifer Fitzgerald, April 27, 2020.
Life Insurance Awareness Month, or LIAM as it’s often shortened to, is all about education and advocacy. According to LIMRA, it can be defined as “an industry-wide campaign which takes place each September and aims to educate consumers on the importance of life insurance, the role it plays in protecting families’ financial security, and helping them get the coverage they need”.
To the average consumer, life insurance can seem incredibly complex. With all our acronyms (VUL, IUL, GUL, etc.) and the variance across product types, it’s no wonder consumers need help demystifying the world of life insurance. It’s up to us to educate consumers and advocate for life insurance coverage beyond what they might receive as a part of their employee benefits package.
Let’s look at a few key statistics from LIMRA to ascertain a better understanding of how American consumers are using and viewing life insurance.
What conclusions can we draw based on the statistics above? Essentially, that Americans rely on employer-sponsored coverage and often don’t explore opportunities to purchase individual coverage because they think it’s too expensive or not as important as their other financial obligations.
It is our duty to capitalize on this opportunity to educate the public and advocate for the importance of individual coverage as part of a family’s overall financial security plan. And there’s frankly no more urgent time to do so than during Life Insurance Awareness Month this year while COVID-19 is bringing financial security and well-being to the forefront of people’s minds.
As advisors and agents, we know life insurance doesn’t have to be expensive or confusing. We have to do our part to make sure consumers know that, too. Knowledge is power for consumers and knowledge will drive sales for all of us.
In addition to the widespread impact of the COVID-19 crisis, this is also a particularly important year to highlight LIAM for life insurance professionals. With Reg BI in full force, it becomes increasingly critical for producers to better educate their clients on life insurance so that they can understand whether the coverage they have is the coverage they need.
Consumers can’t be sure their best interests are intact if they don’t understand the policy they have or how it’s performing. And as their advisor or agent, you’re on the hook for ensuring alignment between their needs and their coverage.
Take this month as an opportunity to review your clients’ policies with them if you haven’t already. Help your clients advocate for themselves by helping them achieve a deeper understanding of their policy performance. There’s no better way to support the mission of LIAM than by empowering your policy owners so they – with the help of you and your expertise – can make data-driven decisions to support their long-term financial goals and objectives.
By the way, it can be incredibly easy to conduct and produce a policy review report with the help of insurtech. Our inforce policy management platform not only gives you consolidated visibility of your entire book, but also enables push-button policy reviews so that you can quickly and easily create client-ready reports that will help guide your conversations with your clients about their policies and their changing needs and circumstances.
The digitization of the life insurance industry is no secret, and COVID-19 has proven that insurtech is here to stay. From skipping in-person health screenings to not being able to meet face-to-face with clients, a lot of the ways we’ve typically conducted business have had to change to adapt to social distancing guidelines. And insurtech solutions were there to save the day.
The writing has been all over the wall now for quite some time. Technology makes commodities and services more accessible to consumers, and life insurance should not be an exception.
Consider some of our partners and other prominent insurtech and fintech players and the incredible impact they’re making on our industry:
Emerging insurtech solutions can help propel our industry forward in a way that makes us all more efficient and more effective and ultimately, able to provide an even more excellent level of client service. From pre-sale to post-sale, our industry is being transformed for the better. The best time to embrace these advancements was yesterday. The second best time is now.
For more inspiration on how to make this Life Insurance Awareness Month count, visit these other valuable resources below: