Life Insurance: Most People Need It So Why Don’t They Buy It?

| June 26, 2013

Universal Life Insurance Company

There’s a lot of talk that goes around on life insurance on our page. When we engage our clients and potential clients in the importance of life insurance, it can often come across as a cut and dry pitch to sell, sell, and sell. This is a systemic problem that plagues the industry; life insurance is taking its time to become an engaging party that reaches out to a consumer’s point of need.

So even though we know that everyone ought to buy life insurance, we’re also faced with the stark reality that at least half of us don’t really care for it. And this possibly has to do with the product: its pricing, its features and the way in which it is sold across the US. While we can’t change products, features or offerings, we sure can change the way we talk about life insurance, its pertinence in the American family and how we can best market and sell it so that it can reach an audience that needs it, wants it and asks for more of it.

Life insurance still gets sold using traditional methods, and those who buy life insurance end up sticking with the same provider they purchased the policy from, but are quite disgruntled about it, according to Michael Costonis and David P Shatto at Accenture. This happens because many don’t know that they can switch to a competing life insurance provider if they’re offering better coverage. This could probably be because of the extensive medical examination that one must go through before purchasing a policy. Many people assume that they are in better health during their younger years and keeping those prices locked in is their only way out. We like to remind our readers and potential life insurance buyers that being able to shop around for comparison quotes are actually a great way to make sure that you’re still getting the most value for your money. You can shop and not buy a policy, and don’t forget that it’s a new lease on life insurance for those that previously suffered from conditions like obesity or bad habits like smoking, but were able to live better lifestyles consistently and hence qualify for lower quotes.

In the article, two main issues that plague life insurance companies these days are brought to light: pricing and convenience. When you use an aggregator website online, life insurance shoppers can use the convenience of the internet to be able to compare quotes from multiple carriers, use life insurance needs calculators to determine how much coverage they ought to be getting and compare policies and plans on their own. Granted that this is not as easy as it sounds, and that many choose to have a certified financial planner give them solicited advice after going through all their accounts and incomes, but for many DIY-ers, information being made available on blogs, carriers’ websites and aggregator websites empowers them to be able to make their own decisions. Of course, much is being done to make this more convenient, and it will only be a matter of time before users can find everything they’re looking for: advice, recommendations, affordable policies, payments, even other financial products, all at their fingertips.

Until then, how can we make the case for life insurance more compelling? By remembering that at the end of the day, it is an essential financial instrument that could cushion the hardest fall a family could possibly have. By remembering that it is available in affordable alternatives, and suggesting these alternatives so that the buyer gets to choose as he pleases. By encouraging young families to have coverage sooner rather than later even on tight budgets, because they are in need for insurance more than any other segment. By encouraging policy owners to do yearly check-ups, which can ensure that coverage is sufficient through the many major events of life, including marriage, childbirth, divorce, kids’ graduation or retirement.


As the industry prepares for big changes, let’s ask ourselves what we can do to make the industry more accessible, honest and relevant to today’s generation. The need for life insurance will never run out, so let’s start speaking and engaging in ways that everyone can understand!

The Life Insurance Industry Needs To Get With The Times. Available at


Author bio: Frank Mitchell has worked as a life insurance agent for 10 years.  After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.

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Category: Life Insurance

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  1. Michael Einsidler says:

    As a rule any time I invest money into anything especially insurance it is shrewd to get multiple quotes from different insurers. Some are more expensive than others and it’s imperative you find the best policy to suit you and your family’s needs. Not everyone views life insurance as imperative, but if you have a growing family and you wish for them to be taken care of in the event of your untimely demise life insurance is a must have and you ought to do your research before choosing the proper policy for you!