When it comes to life insurance, simple matters

Think about the last product or service you bought. What drove your decision? If a combination of price, speed, and simplicity was the key—with a heavy emphasis on the simple—you’re in good company. A 2018 study found that 55% of consumers surveyed were willing to pay more for simpler experiences and 64% said they’re more likely to recommend a brand because it provided simpler experiences and communications.1 Unfortunately, “simple” can be hard to find. A 2019 report found consumers ranked simplicity as one of their most important needs and that “brands are under-delivering on simplicity, with about half of consumers saying brands are not meeting their needs.”2

Simple doesn’t mean less valuable.

When LIMRA released the annual Insurance Barometer in April 2019, one of its top findings confirmed simplicity matters in the world of insurance too. Almost half of those surveyed (47%), said they’re more likely to buy life insurance using simplified underwriting—which tends to be shorthand for get it faster and without a medical exam.3 The average credit union member needs the security life insurance can deliver for the people they care about most. But finding the product can feel anything but simple—and overwhelmed members are all too likely to opt out of the process and the product.

 

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