Would you tell a friend, family member, or even a stranger to buy life insurance? If so, you’re not alone.
Sixty-six percent of Americans who took part in a recent study said they’d probably recommend it.
Younger people are even more likely to suggest this type of insurance to someone in their lives. Specifically, the 2016 Insurance Barometer Study found that nearly eight in 10 Millennials are open to it.
Another group of people that strongly supports life insurance ownership are those who already have a policy. Seventy-five percent say they’d push an acquaintance to buy one.
Would you do the same? If not, you should learn more about the benefits of life insurance.
Lots of Americans Already Own It and Many More are Thinking About It
These statistics are a lot less surprising when you consider the other findings from this LIMRA and Life Happens study.
For example, nearly nine in 10 respondents agreed that most people need this form of insurance.
Also, six in 10 shared that they own either individual or group life coverage. And just over a third said they’re at least somewhat likely to buy one or both in the next year.
"Not everyone who shows interest in life insurance ultimately buys it,” Marvin Feldman said in a related press release. (Feldman is the president and CEO of Life Happens.) But “increased awareness of the importance and benefits of [these policies] is a promising development.”
Are you thinking of buying a policy? Read our article about “Life Insurance Basics.”
Insurers Developing Relationships Via Activity Trackers
Another promising development, especially in the eyes of insurers, is that 30 percent of Americans say they’re very or extremely likely to consider wearing an activity tracker. They’re also willing to share information those devices gather with an insurance carrier in return for financial rewards.
Millennials are more likely than older Americans to agree to this sort of thing. How much more likely? Just over half of those who took part in the survey said they’d consider it.
This situation is even more enticing to people who already use an activity tracker. (Fitbit is a popular example.) In fact, two-thirds of those men and women are up for wearing one and sharing gathered data with their insurer.
Why do so many people feel the way they do about these gadgets? LIMRA and Life Happens found that 27 percent pointed to “the potential to build a long-term relationship with an insurance company” as a reason to share biometric info. Thirty-three percent of Millennials did the same.
“For those insurance companies willing to modernize the way they engage with customers, there is a great deal of potential to build long-term relationships,” Todd Silverhart, Ph.D., said in a release.
“New technologies are not only able to help Americans live healthier lives,” added LIMRA’s corporate vice president. They also “can be the key to developing relationships between insurance companies and policy owners throughout their lives and into retirement.”
Here’s Why So Many Americans Don’t Have a Life Policy
Developing relationships with consumers is important to insurers. That’s because although more than 130 million US adults have life insurance, over 100 million don’t.
A few related statistics, courtesy of LIMRA:
- One-third know they need additional life insurance
- Twenty-five percent wish their spouse or partner would purchase some or more coverage
- Sixty-five percent of Americans won’t buy because they think it’s too expensive
- Two-thirds say their mortgage, groceries, and utilities keep them from buying some or more coverage
- About half say Internet, cable, and cellphone bills prevent them from getting a policy
Some people pass on this kind of insurance because they think a pre-existing condition will send their premiums through the roof. Others think their smoking habit could do the same. To learn more about these situations, read our articles aimed at people with cancer, heart disease, or other pre-existing conditions. Or read our article about life policies for smokers.