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Yet more people end up buying a policy working with a financial professional

 

Good newsPurchase Process for the U.S. Postal Service! A new LIMRA study finds 23 percent of consumers say receiving a direct mailer sparks recognition they need life insurance. This is the most influential method, ahead of speaking to a financial professional (15 percent), talking with friends and family (15 percent), and information received by email or at work (10 percent each).

The study, The Purchase Funnel — How Buyers Buy, examines the four stages of the purchase process for life insurance – from recognition of need to shopping, obtaining a quote and ultimately buying a policy.

While a mailer may spur more consumers to recognize their need for life insurance, when they begin to shop for life insurance, they tend to seek information from various distribution sources equally (online, mail, phone and in-person consultation).

As the consumer begins the process of obtaining a quote, consumers are much more likely to use online (46 percent) and in-person (34 percent) distribution platforms than purchase by phone (21 percent) or by mail (17 percent). Digging deeper, the study finds married consumers and those with dependent children are more likely to use in-person and phone to shop for life insurance. Males and females use all information sources in roughly equal proportions

When consumers are ready to buy, they are most likely to talk to an agent or advisor in person (27 percent). Another quarter will call to purchase a policy (26 percent) and a little more than 1 in 5 will go online (22 percent).

The study also examines what products consumers are more likely to buy through each distribution channel (chart):

LIMRA research shows that of the 31 million who begin the process of shopping for life insurance, less than one third of people (just 9 million) actually purchase a policy. LIMRA estimates that 60 million Americans need life insurance coverage. Understanding the customer journey and the methods they use to gather information, get a quote and purchase a policy will help insurers and financial professionals create the right messages to engage consumers and lead them to see the process through and buy a policy.

Media Contacts

Catherine Theroux

Director, Public Relations

Work Phone: (860) 285-7787

Mobile Phone: 703-447-3257

ctheroux@limra.com

Erica L. Iorillo

Public Relations Consultant

Work Phone: (860) 285-7875

Mobile Phone: 860-371-8638

eiorillo@limra.com