3 Changes to Drive Increased Member Protection
By Chris Copeland, SVP of Product Solutions, CUNA Mutual Group
Life Insurance Awareness Month has always been a good opportunity for credit unions to take stock of their life insurance programs, and step up efforts to ensure members understand the importance of this critical protection.
But the pandemic has brought new urgency to this product category and a new importance to these efforts. Coronavirus is causing members a wide range of financial and emotional stressors. Many could benefit from the peace of mind life insurance may provide, but a surprising percentage don’t have this protection.
Nearly half of your members don’t have life insurance.
According to the 2020 Insurance Barometer Study, conducted annually by LIMRA, as of January 2020 nearly half (46%) of Americans didn’t have life insurance.1
The impact of being without life insurance could be painful for most. This year’s Insurance Barometer found nearly half (44%) of respondents said their households would suffer financially within six months if they lost their primary wage earner. And 28% would feel the financial impact within a month.2
Life insurance can help members protect the things that matter most. Focus on these three areas to drive increased awareness and ownership:
1. Overcome misconceptions about life insurance. Consumers tend to perceive life insurance as expensive and complex. LIMRA’s Insurance Barometer found consumers over-estimated cost by a factor of 3x-5x and that over half (52%)3were confused and overwhelmed by the purchase process. The study showed half of consumers are more likely to purchase life insurance if it uses a simplified underwriting process that is fast and easy, transparent, and doesn’t require doctors visits and medical tests.4
2. Recognize the impact of COVID on the life insurance journey. Although life insurance has traditionally been sold face-to-face (and it remains the channel of choice for some) lobby closures, stay-at-home directives, and general anxiety around in-person contact make it critical to provide a remote process. Choose a provider that allows simplified issue life insurance to be purchased over the phone, through the mail, and via digital channels (see below).
3. Deliver digital channels. Even before Coronavirus hit, consumers showed a growing desire for a digital life insurance process. LIMRA’s Insurance Barometer study found between 2011 and 2020, 23% fewer consumers wanted to purchase life insurance in person; and the percentage who wanted to buy it online increased from 17% to 29%.4 And Millennials aren’t the only ones going digital: Americans of all ages have shown a growing preference for online and tend to use multiple digital channels throughout the life insurance purchase process.
Coronavirus is likely to be with us for the foreseeable future—making it more important than ever to choose a life insurance provider that can deliver the products, resources, and support your members need.
TruStage offers protection designed to be affordable with simplified underwriting, comprehensive online support, and fast approvals and payouts. TruStage has seen a dramatic uptick in life insurance interest during the pandemic and is committed to helping credit unions better protect their members. Click here to learn more.
1 “Is Life Insurance Tomorrow’s Problem? Findings from the 2020 Insurance Barometer Study” published June 16, 2020 by LIMRA 2 “Is Life Insurance Tomorrow’s Problem? Findings from the 2020 Insurance Barometer Study” published June 16, 2020 by LIMRA 3“Is Life Insurance Tomorrow’s Problem? Findings from the 2020 Insurance Barometer Study” published June 16, 2020 by LIMRA 4“2020 Insurance Barometer Study Reveals a Significant Decline in Life Insurance Ownership Over the Past Decade,” a research report published in 2020 by LIMRA
TruStage® Insurance products and programs are made available through TruStage Insurance Agency, LLC. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. Auto and Home Insurance Program are made available through TruStage Insurance Agency, LLC and issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by your credit union. The TruStage® Health Insurance Program is made available through TruStage Insurance Agency, LLC and GoHealth LLC. GoHealth LLC is licensed to sell nationwide and operates in all states with the exception of Massachusetts, Vermont. Note: CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, Further Reproduction, Adaptation or Distribution Prohibited. ICC16-A10a-039, A10a-039-2016, ICC17-SIT-2, 2017-SIT-2.