Personal life insurance’s vitality in today's changing work landscape
By Charla Bloodsaw, Consumer Insurance Solutions Specialist for TruStageTM
In an era characterized by rapid economic shifts, the Great Resignation, and the rise of the gig economy, taking control of one’s financial future has never been more crucial. Amidst these transformative changes, one often overlooked aspect of financial planning stands out - personal life insurance. While the unemployment rate has decreased, positions being filled are often part-time and come with limited to no benefits. In the current gig economy, jobs are readily available, but benefits such as life insurance aren’t. Credit Unions can step in to help fill this gap for their members.
Consumer economic sentiment
When financial pressures occur, looking for coverage like life insurance is often tabled for immediate necessities like buying groceries or finding a place to live. Economics may cause consumers to let policies lapse or forego protections thinking they’ll get coverage again when their financial situation changes. There’s a misnomer around life insurance causing the average consumer to believe the cost of this coverage is high.
Concern remains relatively high, suggesting consumer mindsets are crowded with financial concerns and are fatigued from three years of high concern levels.
Here are the top financial concerns among consumers:
- Having enough money for a comfortable retirement
- Paying for long-term care services if I become unable to take care of myself
- Being able to support myself if I am unable to work due to a disabling illness or injury
- Being able to save money for an emergency fund
- Paying for medical expenses in case of illness or injury
- Paying my monthly bills
Understanding these concerns can help a credit union better serve their members.
While the economy may experience ups and downs, the commitment to securing coverage remains steadfast. In this climate, easy to understand applications, accessing policies with convenience and protection consumers trust becomes crucial. Life insurance ensures that member’s loved ones are protected from the potential hardships brought about by economic downturns. By establishing coverage now, consumers feel some comfort knowing they are somewhat shielded from financial strain, whether it's a market crash, job loss or industry-specific challenges.
The Great Resignation
The Great Resignation, or as it's transitioned to, the Great Renegotiation, has brought about a significant transformation in the workforce. People are reevaluating their career paths, seeking better work-life balance, and pursuing opportunities that align with their values. While this movement empowers individuals to make bold choices, it also underscores the need for coverage during times of change.
If a member’s employer does not offer transportable life insurance coverage, Credit Unions need to position themselves as a valid alternate source for securing this protection. Accidents are never planned and are often inconvenient. Offering an alternative that can be quickly implemented can help keep members secure.
The gig economy
The gig economy has reshaped the traditional employment landscape, with more individuals embracing freelance, contract or part-time work. The gig economy gives individuals a sense of freedom in their work ventures, while also requiring a sizable amount of responsibility. In the absence of employer-sponsored benefits, gig workers must proactively address their financial security, and life insurance coverage is a perfect option.
Helping members protect what matters most is key. Life insurance is designed to do just that. If something happened to a member, this coverage can ensure their loved ones have immediate access to funds for their final expenses could help prevent hardship and heartbreak down the road. No matter the members profession, life insurance helps maintain their family’s quality of life.
The intersection of the current economic landscape, the Great Resignation and the gig economy highlights the importance of members having life insurance through their credit union. While we navigate a world where change is the only constant, having stable coverage that follows members through life changes is important. Personal life insurance serves as an anchor, designed to offer stability and a legacy of financial well-being. By investing in the future through life insurance, members not only embrace the present but also help ensure that loved ones are equipped to thrive in whatever challenges lie ahead.
1LIMRA (2023) 2023 Insurance Barometer Study