WINDSOR, Conn., July 30, 2012 — The majority of Generations X and Y consumers would consider buying life insurance policy from their bank — significantly higher than older generation (Boomers and Silent), where only about a third of these consumers say they would consider it. Awareness of Life Insurance in Banks
"Growing up in a post-Graham-Leach-Bliley environment, the younger generations are open to receiving a broad spectrum of products and services from their bank," said Patrick Leary, assistant vice president, LIMRA distribution research. "We also know these consumers are more likely to need life insurance than older generations. In addition, many of these younger consumers have no existing relationship with a life insurance agent or financial advisor so buying life insurance from their bank is not just another convenience — it provides an opportunity to get the financial protection these consumer really need."
The periodic LIMRA study also found awareness of bank-sold life insurance has reached 54 percent. While this is encouraging, there is still a large portion of the population that needs to be educated. The study found only 44 percent of all consumers would consider buying life insurance from a bank.
The report, "Bank on It! Opportunities With Today's Bank Customer," revealed that 7 in 10 consumers who said they would consider buying life insurance from a bank were interested in simple products. Even looking at more affluent or high-net-worth consumers, only one third would consider buying more complex life insurance policies from their bank.
"Recognizing the desire for simplicity, carriers have designed single premium, simplified issue solutions that leverage technology to meet more complex needs in a simplified way," according to Leary. This approach has worked well. Based on LIMRA's findings, much of banks' success with life insurance has been as a wealth transfer solution, selling single premium whole life and universal life.
"These findings offer a great opportunity for banks wishing to sell more life insurance," Leary continued. "Traditionally, banks have focused on selling single premium permanent life insurance products for the purposes of wealth transfer — something banks should absolutely continue doing. Our research suggests if banks expand their energy on selling term and other basic protection products broadly to their customers, they would have more success."
Catherine Theroux, (860) 285-7787, email@example.com
LIMRA, a worldwide research, consulting and professional development organization, is the trusted source of industry knowledge, helping more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com