Canadians indicate a strong preference for buying their life insurance in person, a recent LIMRA study revealed. The 2013 Canadian Life Insurance Ownership Study shows that 76% of Canadians would prefer to buy life insurance face-to-face rather than buying from work, on the Internet, by direct mail or by phone.
That was one of the key findings from the 2013 Canadian Life Insurance Ownership Study, which monitors long-term patterns in life insurance ownership, adequacy of coverage and consumers’ attitudes about life insurance.
“Our research found that six million Canadians believe they need more life insurance, and three-quarters of those we surveyed would prefer to buy it face-to-face,” says Cheryl Retzloff, senior research director for LIMRA.
Of the one in four Canadian households that prefer to purchase through other methods, the Internet was the most popular (11%), followed closely by workplace and by phone or mail. By comparison, in the United States, 43% of those surveyed said they prefer to buy through the Internet or by mail or phone.
The survey also finds that only 68% of Canadian households have any life insurance at all, compared with 79% in 2006. Life insurance ownership has declined in Canada, but with many Canadians indicating that they need more insurance, the industry has an opportunity to bolster sales.
“Since 2006, Canadians have lived through a recession resulting in less discretionary income for most people,” said Cheryl Retzloff, senior research director for LIMRA. “Given that environment, it’s not surprising to see overall life insurance ownership decline.”
Many Canadians recognize that they are underinsured, the survey shows. Married households with children under age 18 appear to be particularly vulnerable. Three quarters of respondents in this category said they would have difficulty with living expenses if a primary wage earner were to die.
The top factors holding consumers back from buying life insurance include a perception that it’s not affordable, and the fact that it’s considered a low priority.
Are you prepared to provide your life insurance clients with the best options? Can you guide them through the buying process and meet their needs, overcome objections, and well as your own professional goals? ILScorp offers online training for Canadian life insurance agents, including online continuing education credits, and courses specific to meet your needs. Visit ILScorp.com today to learn more about our Life / A&S CE subscriptions and individual insurance training courses.
