Archive for September, 2011

September is National Life Insurance Awareness Month, and those of us in this space understand the critical importance of securing one’s family with appropriate levels of life insurance.  Life insurance does not need to be complicated, but should simply aid in replacing income in the event of a unexpected death.  A recent study conducted by LIFE Foundation and LIMRA exposed a huge gap in life insurance coverage for Hispanics.  Key data points are highlighted in the the following online Article.

Besides identifying the large gap in coverage, the study points to a couple of points that are very interesting and useful for those in the sales and marketing of life insurance products.  First, according to the Article: “When asked about important factors related to the purchase of life insurance, understanding what they are buying ranks highest among Hispanics (27 percent), followed by getting the proper amount of coverage (22 percent), and getting coverage that is guaranteed for life (19 percent). Only 16 percent of Hispanics say that getting the best price is the most important factor”.

Next, the Article states: “ The research found that across all demographic groups, people are increasingly turning to the Internet for help in making life insurance purchases.  Although two thirds of all consumers still prefer to buy life insurance face-to-face from an insurance or financial professional, Hispanics, more than any other demographic group, prefer to purchase a policy direct from a company via the Internet (23 percent compared to 16 percent of Whites and 15 percent of African Americans). When asked how they would use the Internet if they were about to purchase life insurance, 60 percent of Hispanics say they would research it online, but ultimately buy from an insurance professional. Roughly one in four (27 percent) would research and complete the process online and only 13 percent would not use the Internet at all.”

These two data points are extremely telling.  First, as marketers, we need to make the product easy to understand whether in print through an agent or over the Internet.  Second, price is not a driving force, a policy that may be higher priced but well explained may have a better chance of being sold than a lower priced policy that is not very well explained.  Finally, the Internet is a powerful tool with this demographic, again, agents may not be connecting or properly educating the Hispanic market segment, whereas the Internet portals may be doing a more effective job.

The Hispanic marketplace continues to grow at a rapid pace, and as marketers we need to be cognizant of the needs and buying patterns of this demographic.  Tremendous opportunities exist.

Your thoughts please?

Education is all a matter of building bridges, Ralph Ellison

George

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