Study reveals ways to fix sales gap in life insurance

Oct 07, 2011

There's a sales gap of those that have life insurance and those who do not.

Earlier this month, it was revealed in a LIMRA study that there was as much as $17.5 trillion in untapped sales potential in the life insurance market. This means that about 48 million households were claiming to be underinsured, the study said. According to Insurance Networking News, the 2011 Genworth LifeJacket study said more Americans want to understand and own life insurance.

The study, 7 Key Insights to Help Close the Coverage Gap, said 40 percent of consumers don't believe they have enough life insurance for their families' long-term needs. The study said financial professionals should change the way they approach their client base and break down the barriers that keep them from getting insurance.

For agents and advisers, the study said they should remind customers of life insurance during "trigger events," such as the birth of a child. Advisers also should meet policyholders for a short time each year to assess and reevaluate their policies.

"Life insurance is a journey, not a transaction," the study said. "Life insurance is something that can be obtained in increments as needs evolve. Even small increases in coverage over time can mean the difference between financial independence and financial hardship."

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