LIMRA: 44% of women need life insurance or more coverage

Over the next decade, the greatest wealth transfer in history will occur between Baby Boomers and their Gen X, Millennial and Gen Z adult children or grandchildren, according to research from Edward Jones, Next360 Partners and Morning Consult. The study reveals that 48% of Americans plan to leave an inheritance of an estimated $84 trillion in assets through 2045, dubbing this the “Great Wealth Transfer” by many.

The Bank of America Global Research analysis expects $30 trillion of U.S. wealth will transfer to young women in particular, highlighting that women’s wealth is rising globally. As this transfer of wealth increases for women, the gender parity of financial health remains.

The Life Insurance Marketing and Research Association (LIMRA) 2023 Insurance Barometer Study shows that 44% of women, about 54 million people, say that they need life insurance or higher coverage. Nearly half, 47%, are concerned about not having enough money saved for retirement, and 40% are concerned about the ability to save for an emergency fund.

LIMRA data suggests that lower confidence of life insurance knowledge may play a part; 27% of women are not comfortable with their knowledge of personal finance, and only 22% of women say they are “very” or “extremely” knowledgeable about life insurance, compared to 33% of men who said the same. Sixty-one percent of women say they are interested in a life insurance policy that would provide guaranteed income in retirement, but only 46% of respondents say that they are aware of such a policy. Respondents of the Barometer Study reveal insights into how women prefer to shop for life insurance; 44% would research life insurance online but buy from an agent or other professional in person, and the top social media site women use to find financial information is Facebook, followed by YouTube and Instagram. 

This gap presents an opportunity for education and engagement with female consumers, according to LIMRA.

Bobby Powell, vice president of wealth management sales at iPipeline, said that marketing in life insurance is typically targeting specific age groups, but could expand to appeal to a wider audience. 

“I think life insurance is maybe moving more in that regard, where there is more direct-to-consumer advertising, but it’s still focused on specific age groups, like senior-focused or final expense life insurance,” Powell said. “That is usually final expense, very specific term life insurance, or what we would consider a simplified issue type of life insurance, which is really easy to set up and underwrite. As that kind of concept matures more, they should begin targeting a broader audience…”

Powell explained that technology and data analytics can help insurers analyze demographic trends and customer behaviors to better inform targeted strategies that address market needs. Machine learning and AI tools have created an additional layer of predictive analytics.

“Over the past several years, the ability at which we can forensically interrogate the life insurance process has drastically increased,” said Powell. 

Technology and digital solutions may also help in demystifying the process of purchasing life insurance and improving accessibility by accelerating and simplifying the process for consumers.

“There are no [technological] barriers to immediately processing life insurance,” stated Powell. “It’s really in all of the support processes around it, because a carrier has to be able to underwrite that insurance policy, and how they underwrite it, if it’s being sold through an agent.”

With tools that can underwrite products at a more accelerated pace, Powell explained, the process becomes easier for all parties involved – the distributor, carrier, agent and consumer.