Remember the rise of meal-kit delivery services? Many thought the craze would keep growing, but by the end of 2018, consumers had already begun to lose interest. One reason is many find the seemingly easy solution to dinnertime is too much work. The next wave of food delivery services that’s poised to take off is ready-to-eat meals.1 These arrive on demand, with preparation requiring only heating and serving. Dinnertime solved.
Meal kits may have little to do with credit unions, but the trend illustrates something consumers are demonstrating in every aspect of their lives: Simplicity is key.
Today’s consumers don’t just demand speed, convenience and simplicity – they expect to pay for it, and they’re unsatisfied when they don’t receive it. One 2018 study found that 55% of consumers surveyed were willing to pay more for simpler experiences2. And, 64% said they’re more likely to recommend a brand because it provides simpler experiences and communications2.
A more recent study (March 2019) found a gap between what consumers want and what companies deliver. “Brands are under-delivering on simplicity, with about half of consumers saying brands are not meeting their needs.” Additionally, when asked to rank their needs in order of importance, these consumers ranked simplicity among the most important.3
Think about this data in terms of your members. Are you delivering the kind of simplified products and services that drive long-term member satisfaction and loyalty?
Simplified Life Insurance
When this year’s Insurance Barometer was released by LIMRA in April, one of its top findings confirmed this trend extends to the insurance industry as well. Almost half of Americans, or 47%, said they’re more likely to buy life insurance using simplified underwriting.4
It makes sense that so many insurance companies are moving away from paper applications and toward end-to-end online experiences. And that medical exams and insurance agents are fading into background. Faster and simpler policies, even if they’re more expensive, are taking the industry by storm.5
Opportunity at the Intersection of Simplicity and Price
If you’re still unsure whether your members will really pay more for simplified issue life insurance, consider this:
Life insurance costs less than people think.
This wild notion is backed up by data, time and time again. And while past studies may have demonstrated that one demographic or another was less-informed about the true cost of life insurance, LIMRA’s 2019 study didn’t limit its survey question to a single age group:
“When asked how much a $250,000 20-year level term life insurance policy would be for a healthy 30-year-old, the median estimate was $500 – more than three times the actual cost.”4
Life Insurance Awareness Month is a great time to remind your members:
- That life insurance is valuable and necessary
- That getting life insurance can be faster and easier than they think
- That simplified life insurance probably costs less than they think
And, it’s a great time to decide to offer your members what they really want, need and are willing to pay for: simplified issue life insurance.