More than a year into the COVID-19 pandemic, life insurance activity in the U.S. continues to grow. According to a study published in March of this year by MIB Group, Year-over-Year activity in life insurance applications is up by +7.3% and Year-to-Date activity grew by +5.5%. These figures track with the growth the industry saw over much of 2020.
Breaking it Down by Generation
This uptick in activity was seen across nearly every age demographic but was most predominant among those aged 31 – 60 years old. The only decrease came from individuals ages 71 and up. As of February this year, Year-over-Year life insurance activity by age group is as follows:
- 0 – 30: +5.1%
- 31 – 50: +11%
- 51 – 60: +8.4%
- 61 – 70: +4.3%
- 71+: -6.2%
The report states that the decline in the 71+ age group began in March 2020.
“New Norm” vs. “Old Norm”
These figures reveal an overarching difference amongst different age groups. When the pandemic forced the industry to shift into a digital environment, it was the younger, more tech-savvy consumers who were able to adapt to those changes. Video conferencing, e-Apps and digital quoting options became the new normal way of doing business.
With vaccine distribution underway, things appear to be slowly getting back to where they were before the pandemic, but will we ever see a true return to the “old normal” way of doing business? That remains to be seen. Digital marketing, which was already on an upward trend before the pandemic, is here to stay. Even those of you who have started to readopt some of the more traditional methods of doing business will still need to rely on digital means of reaching new prospects and generating leads.
Debunking Life Insurance Myths
That said, your ability to educate and inform the consumer is still the most valuable tool at your disposal. This is especially important when misconceptions start to spread among your target market. According to a recent article published by Nerdwallet, the biggest myth about life insurance today involves coverage and the COVID vaccine.
The notion that insurers won’t pay out for policyholders who have received the vaccine simply isn’t true. The article – titled “The 6 Biggest Life Insurance Myths About COVID, Cost and Coverage” – states, “The COVID-19 vaccine does not impact an insurer’s decision to pay out claims, as confirmed by the American Council of Life Insurers in March 2021. In addition, the vaccine is typically not used to determine your eligibility for coverage. In fact, it may open up coverage for those with underlying health conditions, as the vaccine reduces the risk of dying from COVID-19.”
Information like this is valuable when trying to educate prospects, especially those in the older age brackets who:
a) have been more reluctant to purchase coverage;
b) were first in line for the vaccine
Additional Challenges?
While the MIB Group study shows that the need and interest for life insurance are there, that doesn’t mean policies are selling themselves. Think about how your business has been over the last year. Do these figures track with your own? Have you seen an uptick in younger clients? Or are you struggling to connect with those consumers?
Whatever challenges you’re facing or successes you’re having, IAMS can help your business continue to grow. With production building tools, back office support, creative marketing solutions and more, IAMS is here for you. Call us at (800) 255-5055 to learn more.
