Individuals in the market for life insurance are much more likely to purchase coverage if they receive a needs analysis from an agent and if the agent recommends the amount of coverage they should buy, according to a new study by LIMRA.
The study found that only 41 percent of consumers received a needs analysis from their agents, but 73 percent of those who did purchased policies with an average face amount of $423,000. Another 23 percent of consumers did not receive a needs analysis, but said they had received one in the past; 58 percent of these individuals purchased policies ($337,000, on average). The remaining 36 percent received no needs analysis, and just 49 percent of them purchased policies ($215,000, on average).
Forty-nine percent of the consumers received a coverage recommendation from the agent, and 70 percent of them purchased coverage. Of the 51 percent who did not receive a coverage recommendation, only 57 percent purchased policies.
The LIMRA study confirms that face-to-face meetings between agents and clients remain a vital part of ensuring that Americans get proper life insurance coverage to protect their families and interests. Previous studies have found that consumers prefer to purchase insurance from agents.
The current LIMRA research found that among people who said they were in the market for life insurance, those who shopped exclusively online without meeting an agent were the least likely to purchase coverage. Those who shopped online and then met with an agent were 1.5 times more likely to buy.
According to LIMRA, consumers most often said they count on agents to:
- Ensure they are getting a good value for their money
- Help them understand policy details
- Decide what type of coverage they need
- Decide how much coverage they need