The pandemic has sparked increased interest in life insurance. For insurance agents, this is an obvious opportunity to help people get the coverage they need while earning a nice commission. The opportunity might be even bigger than you realize. Here’s what you need to know about riding the life sales wave and cross-selling to make more life insurance and disability insurance sales.
Interest in Life Insurance Has Surged
Since the start of the pandemic, headlines have featured numerous stories and statistics about COVID-related deaths. As a result, many people have had to face their own mortality, and the result has been a surge in interest around life insurance.
The 2021 Insurance Barometer Study from LIMRA and Life Happens found that 31% of consumers say COVID-19 has made them more likely to purchase life insurance within the next 12 months. The impact is even greater among younger adults. Among Millennials, 45% say they are more likely to buy life insurance because of the pandemic. This makes sense when you realize that Millennials are now between 22 and 40 years old, and many of them have young children who depend on them.
Some of these consumers have already followed through with their plans to purchase life insurance. Another study from LIMRA found that the total number of life insurance policies sold in the first half of 2021 increased 8% compared to the previous year.
Some consumers may need an extra push to go from thinking about life insurance to securing coverage. That’s where you come in as an insurance agent. And while you’re talking to people about their life insurance needs, make sure you also talk to them about their disability insurance needs.
Death Isn’t the Only Danger
According to the Johns Hopkins University & Medicine’s Coronavirus Resource Center, COVID-19 has resulted in more than 5.6 million deaths worldwide. That’s a scary number, but most people who get COVID-19 don’t die. There have been more than 361 million confirmed cases. Most of these people survive, but some of them may experience long-lasting symptoms and complications. According to University of Michigan, 35% of people report symptoms at 60 days after illness.
Some “long COVID” symptoms may be mild, but other people experience serious complications. According to Scientific American, COVID has been linked to blood clotting risks. In some cases, this can lead to amputation.
It’s not just about COVID, either. According to the Social Security Administration, one in four of today’s 20-year-olds will experience disability before reaching age 67, while about one in eight will die before reaching age 67. For working aged individuals, the odds of disability are much greater than the odds of death. Given this, it makes sense to prepare for the risk of disability when you’re preparing for the risk of death.
Strike While the Iron Is Hot
Right now, consumers are receptive to the need for life insurance and disability insurance.
- They see that even young people can die unexpectedly.
- They see that long-term illness and disability are also possible.
- They understand how fragile financial stability can be.
Many consumers are already interested in purchasing life insurance, but they may not know about the need for disability insurance. This is a great time to educate them on DI coverage. They’ll get the insurance coverage they need to secure their family’s financial future, and you’ll get a chance at two sales.