Posts Tagged ‘LIMRA’

Voluntary Benefits Sales Grow

April 22nd, 2014, No Comments, be the first ».

 

A LIMRA survey shows that new annualized premium of voluntary benefits (benefits purchased at the worksite) grew 9 percent in 2013, totaling $4.3 billion.

Voluntary health product sales were $2.6 billion in 2013, a 13 percent increase from the prior year. Accident, critical illness and vision products grew by double-digits for the third straight year to drive overall growth in the voluntary health market.

Term and whole life insurance sales had slumped for the first nine months of the year and then rebounded in the fourth quarter. Total life sales increased 14 percent in the fourth quarter to end the year up 2 percent, with sales reaching $1.4 billion.

Earlier in 2013, LIMRA released a survey of 800 employers to find out how they had planned to navigate the impact of the Affordable Care Act (ACA.) Three out of four employers said they have changed or intend to change their medical plan design in the near future. Cost shifting is the most common strategy among the surveyed employers. Sixty percent said they have already or plan to increase employee contributions to the cost of coverage.

With cost shifting and other plan design changes, voluntary benefits become the best option for employees to maintain their overall insurance coverage. LIMRA research has found that more than 60 percent of employees prefer to buy health and life insurance benefits at work. They like using payroll deduction and they trust their employer has done some vetting on selecting the carriers.

For carriers, worksite sales are an opportunity to efficiently reach the middle market. In particular, LIMRA has observed that real growth opportunity exists for those carriers who can find an efficient way to reach small employers.

The 2013 U.S. Worksite Sales Survey summarizes voluntary benefits product sales of 43 U.S. companies, including 20 of the top 25 carriers.

For more information, visit LIMRA at www.limra.com.

 

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Hispanics a Natural Market for Life Insurance

November 7th, 2013, Comments Off.

According to a recent LIMRA study titled, “Financial Protection for Hispanics,” Hispanics offer a natural market for life insurance.

“While the Hispanic population is complex — they come from many countries — they share a tendency to be young, with large families including children and extended family members,” says Nilufer Ahmed, senior research director, LIMRA Insurance Research. “Their strong emphasis on family makes them a natural market for life insurance.”

Other characteristics of the market include:

  • One third of all Hispanics are third generation or higher in the United States, and speak fluent English.
  • Increased levels of acculturation means increased ownership of individual life insurance, with the most acculturated Hispanics having similar levels of ownership as the general population.
  • Hispanics express multiple financial concerns to a greater degree than the general population. Almost half of Hispanics are very or extremely concerned about dying unexpectedly, compared to less than a third of the general population.
  • More than half of Hispanic households fall in the middle-income category.

According to U.S. Census Bureau estimates, in the next 20 years, Hispanics are projected to grow three times more than any other ethnic group in the U.S. Much like the general population, perceptions about affordability and lack of product knowledge prevent many Hispanics from obtaining life insurance. Also similar to the general population, Hispanics buy life insurance for two main reasons: to provide an income stream if the insured dies and to cover burial and funeral costs.

Opportunities exist for advisors who pay attention to the opportunities and the cultural sensitivities that exist within the Hispanic market, according to the survey. For example, many Hispanic families are multi-generational, with different levels of acculturation in the same household. A smart advisor will take into account the bilingual needs of the family and make sure to include all the family members who are dependent on the wage earner.

Advisors can also refer to financial concerns that Hispanics have as a way to introduce a discussion of life insurance and how it fits in to a plan for each family situation.

This September marks the 10th anniversary of Life Insurance Awareness Month (LIAM), an effort to raise awareness among consumers and producers about the need for life insurance. As a supporter of this information campaign, LIMRA makes available an annual Facts of Life fact sheet on the importance of life insurance. For more information, visit LIMRA at www.limra.com.

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By Ayo Mseka
Editor-In-Chief
Advisor Today

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