Why this is the best time for life insurance

Every generation has a defining moment, but few experience events like the COVID-19 pandemic – a turning point that defines the “past” for all outcomes. Historians and future generations will undoubtedly use the past two years to study the great changes in society.

In the life insurance industry, we also felt changes. Consumer interest in life insurance peaked at the beginning of the pandemic and we have seen steady demand since then. And while we’ve always been in the business of providing security and peace of mind, these days it’s not enough to meet the needs and wants of consumers.

So what has changed? Many potential customers have changed their perspective on life’s most important things, such as health and wealth, and are turning to life insurance to support their newfound wealth for a long, healthy, good life – a method that is supported by many consumer studies. The 2022 Microsoft Work Trend Index revealed 52% of North American workers say they are more likely to prioritize their health at work than they were before the pandemic. In addition, more than half of all Americans say they may see a need for life insurance because of the pandemic, according to the LIMRA report.

This change is the silver lining of the pandemic for both companies and consumers. That’s why, for more than a year, I’ve been calling these the best years for life insurance. Despite the obvious human tragedy, COVID-19 has created opportunities and enabled conversations that the industry must embrace to close the gap and drive positive outcomes for our clients.

What’s coming next in healthcare

One of the most profound and long-lasting implications of this pandemic is that a person’s health before contracting COVID-19 is the key to recovery. For some this was obvious, but for others it was a light bulb moment. Seeing how health contributes to the overall impact of COVID-19 continues to be a major driver and motivator for people making healthy decisions and positive changes in their daily lives.

As an example of this, a CVS Health survey found 77% of people said they were following their health because of the pandemic. After experiencing this epidemic and the insecurity, loss and uncertainty that follows, people are revaluing their health and how to get rid of them quickly. While the impact of COVID-19 on our daily lives is fading, the lessons are long-lasting and will be important to individuals and families as they make important decisions about how to protect their lives.

With the new appreciation of consumers for their health and the motivation to take action to protect it, carriers have the opportunity to lean on the power of quality insurance. We can combine life insurance protection with technology-based programs that provide tools, resources, incentives, and rewards designed to help customers live longer, healthier, good life, helping them throughout their life and the life of the process. By doing this, we can equip our marketing partners with relevant, compelling solutions that meet consumers where they are now, which can make a real, tangible difference.

There is much to be gained – for everyone involved – if all of our industries move forward. Many carriers that not only provide financial security, but also support customers on a daily basis physically and mentally, which we can have. Together, we can support healthy customers that will lead to healthy future generations. When our customers live longer, healthier lives, it’s good for them, their families, their employers, and it’s good for our industry.

By embracing more customer-focused technology, we can continue to revolutionize the way we do business and deliver value to our users. In addition, we can empower our partners to start a clear conversation by making the connection between health and wealth and explaining the cost of life insurance can provide throughout the life of the customer.

Former treasurer

These companies have been working on important payments that can change the lives of individuals, families and even generations. This is work to be proud of, and work that is still very much needed. Despite the recent stock market crash, the record-breaking bull run of the past decade and a half has created a wealth of wealth – wealth that needs to be protected. Life insurance can provide that protection. For companies, this is another opportunity and another reason why what we offer is so important.

But it is not only the wealthy who want the protection of life insurance. Market volatility and inflation, which may appear to be debilitating, add to the same sense of risk. What you have today, whether it’s your health or your savings account, could be at risk tomorrow. Adding to that risk, 60 million American households are uninsured or underinsured, according to LIMRA. The spread gap is not new, but the call to close it is growing fast. We can and must do more to help more families who need life insurance.

One of the ways we can achieve this is through continued digital adoption and progress. The years of the pandemic forced us to speed up the process in our existing companies, so we are creating faster and easier ways to register and buy. This translates into a faster and less complicated way to get a policy and makes life insurance more accessible to more people.

A golden opportunity

Life insurance is ideal for these times. The important thing is that we can explain the reasons because. Consumers today should know that life insurance can do more than protect their loved ones when they pass away. Life insurance can support their long-term financial goals and their long-term health. The industry is expected to continue its old model where regulations are sold and remain until they are supported. It’s ready to move to one that embraces the big picture, prioritizes a shared approach, maintains innovation to serve consumers in an engaging and meaningful way, and delivers on quality.

To his credit, these companies have already taken advantage of some of these opportunities. Now we have to move forward. We are at an important time – one that seeks to create new and sustainable business relationships, aligned with the future of our business, while continuing to provide the peace of mind our customers need. If we can meet this time, and bring the necessary knowledge to the majority of Americans to reduce their vulnerability, our industry is on the verge of making a big change and creating a new revolution in our history. A fact that will be rightly remembered as the best time for life insurance.

Brooks Tingle is the President and CEO of John Hancock Insurance. They can be contacted at [email protected].

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