What is Your View of Life Insurance?

Consumer confidence in life insurance is relatively high, according to a study conducted by LIMRA. More than half of people have confidence in life insurance companies, and 80 percent of people believe life insurance plays a critical role following the death of a loved one. Despite consumer confidence in life insurance in general, many people still think insurance companies are too complicated and use confusing language.

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites.

Full Bio →

Written by

UPDATED: Oct 28, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

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 insurance 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.

Table of Contents

The Good

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. 80 52
Offers products that give people peace of mind. 76 53
Offers quality products that people need. 66 38
Helps people be financially responsible. 54 35
Is financially sound. 55 30

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

The Bad

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. 53 63
Finds loopholes to avoid paying claims. 44 58
Offers products that are too complicated. 47 53
Just wants a sale regardless of your particular needs. 42 57
Preys on vulnerable and unknowing consumers. 35 49

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 percent of respondents. The trust in this group breaks down as follows:

With Life Insurance Currently – 91 percent had ‘Extreme/Quite a bit’ or ‘Some’ confidence in the industry.

With No Life Insurance Currently– 73 percent 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 percent of people in this group have at least some faith in the life insurance industry.

Source: LIMRA 

Related Topics:

Reasons to Buy Term Life Insurance

Whom to Trust When Buying Term Life Insurance Online

Ready to compare quick life insurance quotes?

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

QuickQuote is a BBB Accredited Business. QuickQuote Financial, Inc. BBB Business Review