Why Life Insurance Agents Need Your Referrals

As you can imagine, the job of a Life Insurance Agent has its challenges.  Sharing the word about life insurance is not always welcomed with open arms.  Fortunately, the majority of people in America do have some form of life insurance coverage in force.  However, the majority of Americans admit to being “currently underinsured.”  A case study from a research company named LIMRA*, concluded that across the range of income brackets, 50% of individuals in America admit that they are underinsured when it comes to their life insurance coverage.  This study also brought to light a drastically underserved market of households with annual incomes below $35,000, in which 65% of individuals in this category felt that they needed some, or more life insurance coverage.  Another interesting conclusion from this study was that 25% of the study participants agreed that they were likely to purchase more coverage in the near future.

What do you think it is that would cause so many to remain uninsured or underinsured?  Could it be the fear of high-pressure sales tactics?  Confusion about what policy type or coverage amount to buy?  Fear of not being able to afford it?  Why do you think that the “25% that are likely to purchase in the future,” have not purchased so far?

According to the study, the reasons these households have not bought more life insurance fell into three categories: “Money Issues,” “Decision-making Challenges,” and “Procrastination.”  Regarding the topic of money issues, I once heard a statistic that the average consumer overestimates the cost of life insurance by 3 times – leading many to avoid purchasing coverage altogether.

To get the real facts and to help better understand life insurance coverage, it’s best to speak to a professional.  A well-trained life insurance agent knows how to ask the right questions, collect the facts, and provide you with options to meet your needs.  The agent’s objective is to understand your goals and help recommend services to help you get there.

If you believe in life insurance, you should share your purchasing experience with others.  If you have worked with an agent that took the time to understand your individualized needs, showed a sincere passion for the business and the protection it provides for families, share their good work with others.  More than likely there will be two people who thank you for the referral.



*Information Source: U.S. Life Ownership Study, LIMRA, 2010