Life Insurance Industry Struggling With Communication
Whether you're in the market for Ohio life insurance or California life insurance, Americans across the nation continuously question the need to carry life insurance policies. Research shows that less and less people are choosing to carry a policy for themselves and loved ones. According to the American Council of Life Insurers, the United States had 197 million life insurance policies in place which accounted for one policy per person, since many people carried more than one policy. Now in 2011, the US has gained 100 million people, but only 153 policies in place so only one out of every two people carry life insurance. This is a drastic change and experts question why this is happening.
Part of the reason is that life insurance is optional while auto insurance and home owners insurance are required. Even health insurance is going to be required by 2014 when health care reform is fully in place. Americans have to think about life insurance and seek it out. The most recent survey completed by the Life Insurance and Market Research Association showed that 30% of US households do not carry life insurance and 56% carry no individual life insurance policies. Ohioans, Nebraskans and Iowans, along with other midwestern states buy more life insurance when compared with other regions, but policies are down in these areas as well according to the article "Is Life Insurance Dying" by Steve Jordon on Omaha.com.
Many Americans carry a life insurance policy through their employer, which encourages them not to purchase an individual policy for themselves, even if they might need it. With the recession still being felt by many employers, life insurance plans are being dropped and some employees might not realize they no longer are covered. Life insurance companies continue to be big employers throughout the nation, with approximately 24,000 in Iowa and 10,000 in Nebraska, based on research from the American Council of Life Insurers.
Life insurance is no longer considered a necessity and the industry struggles to market to today's youth. With social media marketing taking over the advertising world, the life insurance industry has some catching up to do. Young people have trouble justifying monthly premiums when they are not required by law and they have no direct impact on day to day life. Even though there are policies out there that offer more than a death benefit, many consumers are unaware of this due to sluggish education. Greg Linde, vice president at Principal Financial Group of Des Moines, says the industry has to do a better job of communicating additional benefits to the public. Some of these unique benefits include long-term care, college savings and critical illness coverage.