Covid-19 and Policy Review: The Time is Now
The onset of the Corona Virus in the United States has dramatically altered the way many Americans view life insurance. A recent study conducted by Lincoln Financial Group aimed to take stock of how the virus and the ensuing lockdowns impacted the overall American attitude towards their policies. The results reveal a renewed and increased interest for people with and without life insurance. As the country digs its way out of this pandemic, the Lincoln study shows us that the time is now to address the needs of your current customers as they grow more diligent regarding their policies. The time is right to approach them for a policy review.
The Lincoln Study Shows Increased Interest In Policy Reviews
The study from Lincoln Financial Group was conducted in mid-summer of 2020 just following the peak of the pandemic and it surveyed both policyholders and non-policyholders. One of many key takeaways was the fact that among the policyholders, 55% had made the decision to review their policies. Amongst those who reviewed their policies, only one-third opted to make any changes. While that number may seem low, the fact that so many were interested in taking a new look at all is significant. Additionally, of the 33% who did make changes, 12% opted to purchase more insurance coverage.
Let’s pause and consider the ramifications of this key statistic. This means that your clients are more invested than ever in considering changes to their policies. While a policy review may not seem exciting under normal circumstances, during this dynamic time your clients will be far more receptive than in the past. This is an excellent opportunity to better serve them by reaching out and inviting them to review. Even if it is just to update contact information or change their beneficiaries, the ability to further build your relationship with your book of business is easier today than in the past.
The Virus has Changed How Consumers View Life Insurance
Another key takeaway from the study is that more than 33% of consumers believe that life insurance is more important now due to the Covid-19 crisis. This is natural behavior as more people were confronted with the uncertainties of mortality while watching a news cycle that frequently touched on the fragility of life in the face of the unknown. Life insurance, by its virtue, is designed to not only provide relief after the loss of life but to provide peace of mind during uncertain times. This virus was a staunch reminder of that to many consumers.
The study also showed that 49% of consumers own life insurance primarily to cover funeral-related expenses followed closely by 43% who stated covering lost income to their family as the primary reason for their policy.
The fact that more people are starting to think about life insurance as essential is a very positive trend for the industry. While the virus has been devastating to both the world’s health and economy, there are positives that inevitably come out in times of adversity. Our overall awareness of germs and how they spread has many people protecting themselves for the first time. We are washing our hands, being more conscientious when we are around people in high-risk categories, and generally taking the risks of day to day living more seriously. The truth is that some of this awareness might well save lives in the future when flu season comes around.
The same could be said about life insurance. We already know how important a good life insurance policy can be for an individual and their family. We are advocates for our clients’ well being. The possibility that more people will begin to see the tremendous value and even necessity of quality life insurance may be one of the net positives that result from this troubling moment in history.
Reach Out to Your Clients and Offer a Policy Review
These have been stressful times for everyone. Reaching out to your client to offer a policy review allows you the opportunity to reconnect with them in a meaningful way. As the data points to the very real possibility of over half of your clients rethinking their life insurance, touching base with them now is the right move.
While we wait for the day when we can shake hands again and conduct business in a more personal way, we can still be there for one another. We can still show our clients that we value their investment and help them work through any new changes that may have developed over the past 6 months in their lives.
Life insurance has taken on profound new meaning in the face of this pandemic and now more than ever our clients could benefit from the peace of mind our industry is founded upon.
