If you’re retired, you have young children, or someone relies on your income, you might be considering purchasing life insurance.
This is a big decision to make. And if you aren’t familiar with the ins and outs of the industry, it can feel even bigger.
Get up to speed on the biggest life insurance trends this year so you’ll know what’s happening and what you should look for.
#1. Increased Whole Vs Term Policies
If you’re shopping for life insurance, you aren’t the only one interested in purchasing a policy. 60.7% of new life insurance policies purchased are whole policies and 39.3% of policies are term policies. What is the difference?
Whole Life Insurance: These policies provide lifelong coverage, create cash value and static premiums.
Term Life Insurance: These policies provide coverage for a designated period of time and is an affordable option.
Both options have pros and cons but planning ahead is always a good move.
#2. Burial Cost Coverage
When surveyed, 60% of life insurance purchasers said they are buying life insurance to cover burial costs and final expenses. Life insurance is a popular vehicle to ensure final expenses are covered. The average cost of a funeral today is $8,094.30, leaving a hefty sum to cover. Thinking through funeral preparations an act of great love for your family and more and more individuals are option for a life insurance policy to cover the costs.
#3. Growth in Indexed UL and Term Life
According to the 2022 Pandemics and Predictions Briefing from LIMRA, both indexed UL and term life will see growth moving forward.
Indexed universal life insurance is permanent. It has a death benefit like other life insurance policies. However, it also has cash value. The cash value component can earn interest during your lifetime through a stock market index. Indexed UL is flexible with a greater return potential, but does not come with guarantees.
Term life insurance gives you coverage at a fixed rate of payments for a certain time. If the policyholder dies during that specified time period, payment of the death benefit is guaranteed. Typically, term life insurance is the most affordable kind of life insurance available.
#4. Virtual Meetings
The next life insurance trend to explore is virtual meetings. When the COVID-19 pandemic began in March 2020, we all quickly became used to doing business online. The life insurance industry was no different.
Insurance companies began using technology such as video conferencing software and e-signatures to sell policies virtually. This allows advisors to meet with a greater number of people — making it easier for you as a buyer to get on their schedule.
Even though many businesses have returned to in-person meetings, a large number of life insurance companies are still offering remote options, making this one of the helpful life insurance trends for this year.
#5. Consumer Confidence
Confidence in the life insurance industry is currently high, with consumers feeling confident about insurance companies, financial advisors, insurance agents, and brokers.
How can you increase your confidence and find an insurance company you trust? Read online reviews to learn more about a company or agent. Ask a friend or family member to suggest someone they’ve had a good experience with. Or speak with a representative and research their background before committing to work together.
We’re here for you
Working with a trustworthy Bankers Life representative can help you choose the right life insurance policy. A Bankers Life representative will be by your side every step of the way helping you navigate the process of figuring out what’s best for you. Learn more about our services here.
