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Who Buys What and Why (2017)

11/27/2017
Who Buys What and Why (2017)

Industry Issues

Information on recent life insurance buyers can assist members in business development and distribution effectiveness. The report identifies household traits associated with life insurance buyers. It illustrates how members can use consumer segmentation to identify the right prospects for their product offerings.
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Key Findings

Buying reasons

  • Buying reasons more often associated with term life include: replacing the income of a primary wage earner, ensuring a mortgage pay off, and ensuring college funding.
  • Buying reasons more often associated with permanent life purchases include: covering final expenses, and transferring wealth to the next generation.

Life events

  • Life events more often associated with term life purchases include: getting married, obtaining group life at work, and having a child.
  • Life events more often associated with permanent life purchases include: death of a friend or family member and retirement.

Buyer types

  • Two-thirds of purchases include coverage for adults, and one-third include coverage for children.
  • The majority of recent buyers did not have existing life coverage. One-in-four buyers added to existing coverage, while just 12 percent replaced existing coverage.
  • The likelihood of buying permanent life increases among buyers who are adding to their existing life coverage. Adders are also more likely to buy higher coverage amounts, while those with no prior coverage tend to buy lower coverage amounts.


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Meet the Project Director

James T. Scanlon, M.S., HIA
Senior Research Director, Insurance Research - Markets
LIMRA
jscanlon@limra.com

Scanlon directs a team of LIMRA researchers focused on insurance product and service marketing. His program includes one-time topical studies, as well as recurring surveys that track consumer behaviors and ownership levels over time. Scanlon conducts projects with a focus on key consumer segments, including the middle market, affluent markets, and small-business owners. He holds an M.S. in resource economics from the University of Massachusetts, where he also earned a B. A. in economics.

For more information, Email jscanlon@limra.com


James T. Scanlon, M.S., HIA