What do you think about the life insurance industry in general? How about term life insurance specifically?
If you’re like most people, you probably don’t give it much thought at all. Perhaps you bought a term life policy at some point and only think about it when the premium comes due. Or maybe you don’t even have a policy, in which case you most likely think about life insurance very rarely, or maybe never.
But if you have had a positive experience with life insurance, meaning you have seen it make a real difference following the death of a loved one or friend, you may have strong feelings about life insurance. That’s what a study by LIMRA called Consumer Confidence in Life Insurance Companies has revealed.
The study asked both experienced and non-experienced people to agree or disagree with a list of positive statements about the life insurance industry. For all questions, people who have had direct experience with life insurance were more likely to agree with positive statements about the industry. Here are the five questions with the highest positive response rate.
The life insurance industry…
|Positive Statement||% of Respondents with Experience Who Agree||% of Respondents with No Experience Who Agree|
|Plays a critical role following the death of a loved one.|
|Offers products that give people peace of mind.|
|Offers quality products that people need.|
|Helps people be financially responsible.|
|Is financially sound.|
The same group was asked to agree or disagree with a list of negative statements about the life insurance industry. As expected from the positive questions, people who have seen the benefits of life insurance first-hand were less likely to agree with negative statements about the industry. Here are the five questions with the highest negative response rate.
The life insurance industry…
|Negative Statement||% of Respondents With Experience Who Agree||% of Respondents With No Experience Who Agree|
|Uses confusing language.|
|Finds loopholes to avoid paying claims.|
|Offers products that are too complicated.|
|Just wants a sale regardless of your particular needs.|
|Preys on vulnerable and unknowing consumers.|
The Not So Ugly
One of the most interesting findings of the survey was the high level of consumer confidence in the life insurance industry. This applies especially to those individuals with direct experience, which made up 45% of respondents. The trust in this group breaks down as follows:
With Life Insurance Currently – 91% had ‘Extreme/Quite a bit’ or ‘Some’ confidence in the industry.
With No Life Insurance Currently– 73% had ‘Extreme/Quite a bit’ or ‘Some’ confidence in the industry.
As one would expect, people tend to have more confidence if they’ve seen the real impact life insurance can make following the death of a loved one or friend. For others, it may be harder to show the same confidence. Although, the survey shows 64% of people in this group have at least some faith in the life insurance industry.