Life Insurance Customer Journey

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Life Insurance Customer Journey

Most Americans prefer to purchase life insurance policies from insurance agents. At 64%, price is the top deterrent of Americans when it comes to purchasing life insurance. 50% of Americans who own life insurance policies are older than 45 years. Below is an overview of our findings.


Life Insurance Buyers

In the United States, millennials are the least likely generation to buy a life insurance policy. This is despite the optimal age for buying a life insurance cover being below 35 years. Only about 60% of Americans have a life insurance cover, of whom over 50% are older than 45 years. Studies show that the majority of young adults (18 to 35 years) tend to overestimate the cost of a life insurance policy by about 213%, which could be the reason why they stay away from life insurance policies.

Behaviors and Barriers

I. Price

At 64%, price is the top deterrent of Americans when it comes to purchasing life insurance. As mentioned earlier, many American adults tend to overestimate the cost of life insurance. Another reason would be because they cannot afford it at an earlier stage in life due to student loans and other financial obligations.

II. Financial Priorities

At 59%, the number two reason why Americans do not purchase life insurance is because they have other financial priorities. More than 50% of the nearly 40% of Americans who do not own an insurance policy do not consider it a priority. Payments for utilities and conveniences such as internet service, cable, and cell phones takes precedence over insurance premiums. U.S. residents aged 25 years or older consider funding their retirement to be the top financial priority.

III. Lifestyle Choices

Marital rates have decreased exponentially in the United States since the 1960s, and dual-income households have doubled in the same period with over 60% of American households having two income earners. Some Americans are putting off purchasing life insurance because they do not have dependents or because they are not the sole breadwinners.

IV. Discomfort

Some Americans prefer not to think about purchasing insurance policies because they see it as a preparation for death. About 50% are uncomfortable with taking medical examinations and would be more open to buying policies if they do not have to go through the medical process.

Buying Channels

About 50% of American adults search for life insurance online but about 51% still prefer to make their life insurance purchases face-to-face from an insurance agent. While U.S. millennials prefer to research online, most admit that they end up buying policies from an agent. This could be because most insurance companies are failing to provide enough information online.

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