LIMRA Consumer Research
Industry IssuesInformation 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.
- 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 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.
- 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.