Maintaining the Covid-19 Life Insurance Bump
It’s an open secret in the life insurance industry that it’s difficult to sell policies to younger generations. They may feel invincible and think that nothing will happen to them. Or, with crushing student loan debt, a mortgage, and a car payment, they could have different financial priorities. The very reasons they’d most benefit from life insurance could obscure their view of its necessity.
The last few months, however, have seen a seismic shift in how consumers view life insurance. The COVID-19 pandemic was a sobering moment for many - businesses, governments, and young families.
While struggling to adapt to distance learning, wearing masks to the grocery store, and trying to keep five-year-old’s a socially distanced six feet apart, many parents didn’t just panic buy toilet paper. They bought life insurance.
For the fifth month in a row, consumers under 44 years old bought more life insurance policies in June than any other demographic. Confidence in the industry rose while confidence in the economy fell. Younger buyers realized that a life insurance policy was an important financial tool to protect their families.
As we enter recovery mode, how does the industry build on this momentum? Keeping consumers engaged through technology.
If a young couple has another child and wants to add them to their policy, can they do it online? What if they think they might need more coverage, can one of your advisors connect with them through a chatbot? Not only did the coronavirus pandemic increase insurance sales, it also brought home to many companies the importance of robust technology tools.
People couldn’t leave their homes, and even with eased restrictions must wear masks when they go out. Online sales in the United States grew 76.2% year over year in June 2020, indicating a strong shift from in-person to online shopping. To keep the momentum of life insurance sales going, companies must continue to offer more options and tools in the digital space.
To ensure that people keep up the positive practice of having life insurance products in place, make it easy. Provide them with the tools to change policies, add beneficiaries, and set up and change payment methods online. A good user experience keeps them around, and information on your website or during the application process that educates and advises builds their confidence in your company and products.
Equip advisors with insight into the data gathered by your sales platform so they can personalize suggestions to current and new clients. Have them follow up on buyers who dropped out of your sales channels before completing a purchase. They can also reach out to families who bought during the pandemic to personally welcome them to your company.
With the right technology tools, your company can build on the momentum of the COVID-19 bump and people can sleep easier at night knowing they’re protected now and in the future.