By FINTECH Books Contributor, Moran Zur
Selling life insurance is difficult. People are loath to discuss or even acknowledge their own mortality. Moreover, unlike a new car or iPhone, life insurance provides none of the instant gratification that leads people to make impulse purchases.
As shown in increasing lapse rates for life insurance policies, renewing or better yet selling a second policy to current policyholders, is even more difficult. There’s a good chance of losing the customer when the status of a term life insurance policyholder changes, since no real retention tools are available.
With over 800 life insurance companies in the United States alone, all offering a largely commoditized service, creating brand differentiation, positive brand association and certainly sustained brand loyalty is almost impossible, especially when selling nothing immediately tangible. Creating a new way of selling and retaining life insurance policies with a holistic approach towards clients and their families is crucial for the ongoing success of the industry.
This makes sense since each person is more than the sum total of their assets, and building an emotional connection with consumers is crucial to the success of life insurance companies.